UK House Price Growth Slows Amid Geopolitical Tensions

UK house price growth slowed in July, according to data from Nationwide. The UK Nationwide House Price Index rose 1.8% year-on-year, down from a 2.2% increase in June and below market expectations of a 1.9% gain.

Nationwide Chief Economist Robert Gardner attributed the slowdown to renewed geopolitical tensions, particularly the conflict involving Iran and the US, which have pushed up energy prices and contributed to volatility in market interest rate expectations.

However, Gardner noted that easing consumer inflation and moderating wage growth have given the Bank of England greater scope to assess whether further policy tightening is needed to return inflation to target.