UK annual house price growth accelerates to 1.6%
In the United Kingdom, house prices in August were 1.6% higher than a year earlier, mortgage lender Nationwide Building Society reported. The annual growth rate accelerated compared with July, when it stood at 1.4%, although it was below the 2% forecast by economists surveyed by Reuters.
Price dynamics in August
On a monthly basis, house prices rose by 0.2% in August. This was slightly above economists' forecast, which expected growth of 0.1%. As Cyprus Mail reports, Nationwide's data indicate that demand in the housing market persisted despite the uncertain economic situation and the consequences of the war in Iran.
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Impact of economic uncertainty
Nationwide Chief Economist Robert Gardner said that market activity and prices had remained subdued in recent months because of the uncertain economic environment. According to him, geopolitical tensions and the conflict in the Middle East are raising energy prices and market interest rates. At the same time, Gardner noted that housing affordability is improving.
Last month, Rightmove recorded the largest August decline in asking prices for newly listed homes since 2018. Capital Economics' senior UK economist Ashley Webb suggested that uncertainty over possible tax increases in Finance Minister John Healey's upcoming budget could further restrain price growth in the coming months.
