House Prices Edge Higher Amid 'Soft' Market
UK house prices have shown some life in July, but the market remains sluggish due to ongoing uncertainty. According to Nationwide Building Society, the average house price rose by 0.1% month on month to £277,542. This is a small increase after two months of stagnant or falling prices.
The annual rate of growth slowed sharply to 1.8%, down from 2.2% in June. The market has been affected by lenders hiking their mortgage rates despite the base rate remaining at 3.75%. The Bank of England kept interest rates unchanged but warned that inflation is set to rise due to the Iran conflict.
Nationwide's chief economist, Robert Gardner, noted that 'market activity and house prices have remained soft in recent months, in part reflecting the uncertain economic backdrop.'