- UK August Nationwide house prices +0.2% vs +0.1% m/m expected
- Prior +0.1%; revised to -0.1%
- UK August Nationwide house prices +1.6% vs +2.0% y/y expected
- Prior +1.8%; revised to +1.4%
UK house prices moved up slightly in August but overall remains steady after a negative revision to the July figure. Overall, it still points to rather tepid and subdued activity in the housing market. That as economic uncertainty continues to linger amid ongoing tensions between US and Iran, with the impact spilling over to inflation and rates.
While the monthly index moved up, the average price of a dwelling in the UK did drop a little to £275,465. The annual change is still reflecting a positive figure, so that at least is reaffirming that the resilience seen earlier in the year is still holding up decently.
Nationwide notes that:
“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.
Underlying affordability is improving, as house price growth remains well below earnings growth. although some of these gains have been offset by higher mortgage rates. Nevertheless, this suggests that activity should regain momentum in the quarters ahead providing the energy shock wanes and confidence returns, especially if market interest rates fall back towards pre-conflict levels.”
This article was written by Justin Low at investinglive.com.