UK house price growth remains subdued at 1.6% in August - Nationwide
UK house price growth remained subdued in August amid economic uncertainty and elevated geopolitical tensions, according to Nationwide Building Society on Tuesday.
According to Nationwide's UK house price index, house prices rose 1.6% in August from a year earlier, picking up slightly from annual growth of 1.4% in July, the latter revised down from 1.8%.
The figure, however, came below the 2.0% rise expected by the FXStreet-cited consensus.
On a seasonally adjusted monthly basis, prices increased 0.2% in August, following a 0.1% decline in July, which was revised down from a 0.1% rise. August's on-month figure was higher than expectations of a 0.1% rise.
Nationwide said it revised its UK house price index for July following a system change that resulted in some cases being omitted from the original sample.
The average UK house price was £275,465 in August on a non-seasonally adjusted basis, down from £276,581 in July.
"Market activity and house prices have remained subdued in recent months, in part reflecting the uncertain economic backdrop," said Nationwide Chief Economist Robert Gardner.
"Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on
energy prices and market interest rates."
Gardner noted that expectations for the future path of the Bank of England's bank rate have been volatile, although there have been signs that higher energy prices are not feeding through to underlying price pressures.
He said easing private-sector wage growth should give policymakers "breathing space" to assess whether tighter monetary policy is needed to bring inflation sustainably back to target.
"Underlying affordability is improving, as house price growth remains well below earnings growth, although some of these gains have been offset by higher mortgage rates," Gardner said.
He added that housing market activity should regain momentum in the coming quarters if the energy shock fades, confidence improves and market interest rates move back towards levels seen before the conflict.
Separately, Nationwide research found that homes located within a UK National Park command an average 24% premium compared with otherwise similar properties elsewhere.
The premium is equivalent to around £66,500 based on the average UK house price in the second quarter of 2026.
Properties within five kilometres of a National Park attract a 6% premium, while homes within National Landscape areas in England & Wales command an average 14% premium, Nationwide said.
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