UK House Prices Inch Up in July Amid Uncertain Economic Outlook

UK house prices rose in July after three months of decline, according to Nationwide Building Society. The increase was small, at just 0.1% month-over-month. However, this growth was not enough to stop the annual rate from slowing down.

In July, UK house prices were 1.8% higher than a year ago, which is slower than the 2.2% increase seen in June. This deceleration is attributed to an uncertain economic outlook, partly due to geopolitical tensions and their impact on energy prices and interest rates.

Nationwide Chief Economist Robert Gardner pointed out that the ongoing conflict between Iran and the US has been exerting upward pressure on energy prices and market interest rates in recent weeks. He noted that the Bank of England kept interest rates unchanged at 3.75% last Thursday, but also stated that market bets for a rate hike this year reflect the risk of increased inflation pressures.