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UK house price growth moderated a touch in August but remains elevated, the latest Nationwide house price index has shown.
Nationwide on Thursday said annual house price growth in the UK was 10% in August, easing from 11% in July but remaining in double-digits for the tenth month straight. The monthly rise accelerated to 0.8% from 0.2%.
The average UK house price now stands at £273,751, up from £271,209 in July and having risen by almost £50,000 over the past two years.
The UK housing market has shown resilience in recent months given higher interest rates and a squeeze on household incomes.
‘There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer enquiries in recent months and the number of mortgage approvals for house purchases falling below pre-pandemic levels. However, the slowdown to date has been modest, and combined with a shortage of stock on the market, has meant that price growth has remained firm,’ said Robert Gardner, chief economist at Nationwide.
‘We expect the market to slow further as pressure on household budgets intensifies in the coming quarters, with inflation set remain in double digits into next year. Moreover, the Bank of England is widely expected to continue raising interest rates, which will also exert a cooling impact on the market if this feeds through to mortgage rates, which have already increased noticeably in recent months.’
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