UK House Prices Inch Up by 0.2% Amid Ongoing Economic Uncertainty

The UK house price index has shown a slight increase of 0.2% in August, following a 0.1% dip in July, according to Nationwide's data. The average UK house price in August was £275,465.

Nationwide's chief economist, Robert Gardner, attributed the subdued market activity and house prices to the uncertain economic backdrop, including geopolitical tensions and volatile market expectations of the future path of the Bank of England base rate.

Despite the challenges, underlying affordability is improving as house price growth remains below earnings growth. However, higher mortgage rates have offset some of these gains.

Nationwide revised its UK house price index for July 2026 due to a system change.