UK House Price Growth Slows Amid Geopolitical Tensions

UK house price growth slowed down in July, according to data from Nationwide. The mortgage lender's latest index showed that prices rose by only 1.8% on-year in July, compared to 2.2% in June. On a month-to-month basis, prices edged up by just 0.1%. This marks the fifth consecutive month of subdued growth.

Robert Gardner, Nationwide's analyst, attributed the soft market to an uncertain economic backdrop. Geopolitical tensions remain high, particularly with the conflict between Iran and the US exerting upward pressure on energy prices and interest rates.

The Bank of England's Monetary Policy Committee voted 6-3 to leave bank rate at 3.75% last Thursday. This marks the fifth consecutive meeting without a change in interest rates. Consumer price inflation declined further in June, easing from 2.8% in May to 2.6%. However, wage growth has continued to ease, giving policymakers more breathing space.