House prices remain sluggish in ‘subdued’ property market
House prices continued their sluggish run in August, gaining just 0.2 per cent on the previous month, as uncertainty caused by the Iran war and the upcoming Budget in October weigh on the market. The average UK house price grew by 1.6 per cent to £275,465 in the year to August, marking a slight improvement [...]
House prices in the UK have remained stagnant in August, growing by a mere 0.2 percent compared to July, according to the Nationwide house price index. The average UK house price reached £275,465 for the year up to August, a slight uptick from July's 1.4 percent year-on-year growth. The subdued property market can be attributed to the ongoing Iran war and the impending Budget in October, both of which have led to heightened uncertainty.
Chief economist Robert Gardner noted that market activity and house prices have been "subdued" in recent months due to the unstable economic climate. The conflict in the Middle East has contributed to higher energy prices and market interest rates, resulting in an average homebuyer needing to contribute £18,400 more to a mortgage than in January.
Despite these challenges, there are potential signs of easing inflation caused by the Iran war, which could give policymakers more flexibility in managing interest rates. While the UK's property market appears stable and consistent, factors such as rising global energy prices, persistently high inflation, and a higher-than-desired base rate will weigh heavily on households as they prepare for the upcoming base rate decision and the Autumn Budget at the end of October.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
