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House prices crept higher in the UK in August from July, but the annual rate of growth - while still steep - has slowed, data from Halifax showed on Wednesday.
The Halifax house price index saw house prices rise 11.5% in August, but this was behind the 11.8% annual rise in July. It also was significantly behind market consensus, according to FXStreet, which had forecast a 12.5% rise.
Versus the previous month, house prices increased by 0.4% in August, picking up from July's 0.1% slip.
‘The slight fall seen in average house prices in July was offset by a return to growth during August - although the increase was relatively modest compared to the rapid inflation we've witnessed in recent times. Over the last year the rate of monthly house price inflation has averaged around 0.9%,’ Halifax's Mortgage Director Kim Kinnaird said.
The typical house price reached another record high in August, hitting £294,620.
Kinnaird continued: ‘While house prices have so far proved to be resilient in the face of growing economic uncertainty, industry surveys point towards cooling expectations across the majority of UK regions, as buyer demand eases, and other forward-looking indicators also imply a likely slowdown in market activity.’
The slowdown, she explained, will come from the ‘considerable’ hit to income expected from the cost-of-living squeeze.
‘With house price to income affordability ratios already historically high, a more challenging period for house prices should be expected. However, this should be viewed in the context of the exceptional growth witnessed in recent years, with average house prices having increased by more than £30,000 over the last 12 months alone,’ Kinnaird added.
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