UK House Prices Rise Amid Interest Rate Uncertainty

UK house prices rose for the first time in four months in August, according to Nationwide, as buyers and sellers remained in a 'holding pattern' before an expected increase in interest rates later this year.

The average price of a British home increased by 0.2% month-on-month to £275,465, marking the first rise since April, and beating analysts' forecast of a 0.1% rise.

Following three months of declining prices, the UK housing market is awaiting the outcome of the next vote by the Bank of England's monetary policy committee on September 17 on whether to raise the base rate of interest from its current 3.75%.

Financial planner Ian Futcher said: 'Over recent months, expectations for interest rates have been driven by the stop-start nature of the conflict in the Middle East,' leaving the housing market in a state of uncertainty ahead of the next interest rate decision.