UK house price growth remains subdued

Landlords considering their next property purchase or sale face a housing market where weak house price growth and higher mortgage costs continue to restrict activity.

Nationwide said UK house prices increased by 1.6% in the year to August, compared with 1.4% in July.

Prices rose by 0.2% month on month after seasonal adjustments, following a 0.1% fall in July.

The average house price stood at £275,465, down from £276,581 the previous month.

Mortgage costs weigh

Nationwide’s chief economist, Robert Gardner, said: “Market activity and house prices have remained subdued in recent months, in part reflecting the uncertain economic backdrop.

“Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on energy prices and market interest rates.”

He added: “Market expectations of the future path of Bank Rate have been volatile.

“While the latest energy price shock poses inflation risks, there have been encouraging signs that it is not feeding through to underlying price pressures.”

He went on to say that private sector wage growth has also eased, and affordability is improving.

Property sector reacts to Nationwide house price data

Nathan Emerson, chief executive at Propertymark, said: “Considering factors such as ongoing global unrest, it is positive to see the housing market deliver stability and overall consistency.”

Tomer Aboody, the founding director of specialist lender MT Finance, said: “Nationwide’s data points to a housing market which continues to soften.

“With another change in prime minister and the prospect of more taxation on the way in the autumn budget, understandably buyers and sellers are reluctant to make a move unless essential.”

Jason Tebb, the president of OnTheMarket, said: “Broadly stable property values indicate a subdued market as focused buyers prepared to make their move during the usually quieter summer period proved to be price-sensitive in their negotiations.

“However, market resilience continues to be evident even while higher mortgage costs and economic uncertainty bring an element of caution.”