Nationwide's Data Shows UK House Prices Rise, But Miss Predictions

UK house prices continued their gentle recovery in August, rising by 1.6% year-on-year and 0.2% from July, according to Nationwide's latest data.

This growth is slower than economists had predicted, with a Reuters poll forecasting 2.0% year-on-year growth.

Nationwide's chief economist, Robert Gardner, noted that the ongoing Middle East conflict has pushed energy costs higher and lifted market interest rates, which can impact day-to-day mortgage pricing.

Despite this, demand for housing appears to be holding up, with the Bank of England expected to report a small rise in mortgage approvals later on Monday.