• Swindon & Wiltshire Economy
• Friday August 30 2024
• Author Name: Peter Davison

House prices are continuing to grow, despite slight dip in August – Nationwide

House prices in the UK have fallen for the first time since April, according to Swindon-based mortgage lender Nationwide.

The building society said the average house price in the UK was £265,375 in August, down 0.2 per cent on the previous month.

However, the annual growth in house prices stood at 2.4 per cent – up from 2.1 per cent in July.

Robert Gardner, chief economist at Nationwide, said: “UK house prices fell by 0.2 per cent month on month in August, after taking account of seasonal effects, but the annual rate of house price growth continued to edge higher.

“Average prices were up 2.4 per cent year on year, a slight pickup from the 2.1 per cent recorded in July and the fastest pace since December 2022 (2.8 per cent). However, prices are still around three per cent below the all-time highs recorded in the summer of 2022.

“While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience in the context of the higher interest rate environment and where house prices remain high relative to average earnings, which makes raising a deposit more challenging.

“Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”