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UK house prices tick up in August after three months of declines
Nationwide said the average home price rose to £275,465 in August, while the market expects a potential 0.25% rate increase by December.
UK house prices rose in August for the first time in four months, according to Nationwide. The average price of a British home increased 0.2% month on month to £275,465, reversing a three-month stretch of declines.
The gain followed Nationwide’s earlier revisions, including a 0.1% rise it recorded for July before prices fell back by 0.1%. Analysts had expected only a 0.1% monthly increase, and on an annual basis prices were up 1.6% versus the same month last year.
The report pointed to a “holding pattern” among buyers and sellers as the housing market awaited the Bank of England monetary policy committee vote on 17 September. Ian Futcher, a financial planner at Quilter, said the next rate decision and uncertainty around whether rates have peaked have kept borrower confidence subdued.
Nationwide’s chief economist Robert Gardner said the latest increase in the UK energy price cap, which will push bills to a three-year high this winter, has not yet affected buying and selling activity. The average UK property price also remains more than £3,000 below Nationwide’s April estimate of £278,880, while markets are not expecting a rate hike on 17 September but are pricing in a 0.25% increase by December.