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UK house prices rise 0.1% in July as annual growth cools
Nationwide said annual price growth slowed to 1.8% in July, down from 2.2% in June, citing caution over interest rates and higher energy and borrowing pressure from Iran-linked geopolitical tensions.
UK house prices edged up by just 0.1% in July, according to Nationwide, leaving the average home price at £277,542. The lender also said annual price growth cooled to 1.8% from 2.2% in June, with July still below the level recorded in May.
In comments carried by the Guardian Business, Nationwide attributed the softer pace to heightened uncertainty that has made prospective buyers cautious about interest rates, during a period that also overlaps with the Iran conflict.
The outlet also noted that the Bank of England kept interest rates on hold at 3.75%, but warned that further escalation of the Iran war could push inflation above 4% next year, adding to cost pressures that can weigh on housing demand.
The Guardian Business further pointed to housing market stress ahead of the peak season, including Taylor Wimpey warning of weaker buyer demand and higher building costs, and expecting to complete 10,600 to 10,800 homes this year, at the lower end of its prior range.