UK house prices down by 5.3% in August
EPA-EFE/TOLGA AKMEN
Annual house price growth in the United Kingdom came in at a negative 5.3% in August, landing significantly lower than expected and reaching the weakest point since July 2009, the Nationwide House Price Index stated in its report published on Friday.
Compared to the previous month, the figure declined by 0.8% on a seasonally adjusted basis. Meanwhile, the average house price in the country was estimated at £259,153.
"The softening is not surprising, given the extent of the rise in borrowing costs in recent months, which has resulted in activity in the housing market running well below pre-pandemic levels," Nationwide Chief Economist Robert Gardner commented. "While activity is likely to remain subdued in the near term, healthy rates of nominal income growth, together with modestly lower house prices, should help to improve housing affordability over time, especially if mortgage rates moderate once Bank Rate peaks."