Financial News: UK House Price Growth Softens In August

UK House Price Growth Softens In August

09/01/2025 - 05:29:00 (RTTNews)

(RTTNews) - UK house prices logged a slower pace of growth in August due to stretched affordability, the Nationwide Building Society said Monday.

House prices increased 2.1 percent on a yearly basis in August, slower than the 2.4 percent rise seen in July.

On a monthly basis, house prices edged down 0.1 percent, in contrast to the 0.5 percent increase in the previous month. Prices were forecast to rise 0.1 percent.

"The relatively subdued pace of house price growth is perhaps understandable, given that affordability remains stretched relative to long-term norms," Nationwide's Chief Economist Robert Gardner said.

Gardner said, "House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years."

However, he observed that affordability should continue to improve gradually if income growth continues to outpace house price growth as anticipated.

Nationwide expects borrowing costs to moderate a little further if Bank Rate is lowered again in the coming quarters. These rate cuts are likely to support buyer demand, especially since household balance sheets are strong and labour market conditions are expected to remain solid.

The Bank of England had reduced its benchmark rate by 25 basis points last month, which was the fifth cut since August 2024. The current 4.00 percent is the lowest since early 2023.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Greece Manufacturing Growth Strongest In 5 Months (26 min(s), 21 sec(s) ago)
(RTTNews) - Greece's manufacturing activity expanded at the quickest pace in five months amid ...Full Story»

Poland Q2 GDP Growth Unrevised At 3.4% (58 min(s), 21 sec(s) ago)
(RTTNews) - The Polish economy expanded at an accelerated pace as initially estimated in the sec ...Full Story»

Turkey Q2 GDP Growth Accelerates To 4.8% (01 hr(s), 19 min(s), 21 sec(s) ago)
(RTTNews) - Turkey's economic growth rebounded strongly in the second quarter, official data ...Full Story»

Eurozone Jobless Rate Falls To 6.2% (01 hr(s), 42 min(s), 21 sec(s) ago)
(RTTNews) - The euro area unemployment rate dropped marginally in July, figures from Eurostat reve ...Full Story»

UK House Price Growth Softens In August (02 hr(s), 12 min(s), 21 sec(s) ago)
(RTTNews) - UK house prices logged a slower pace of growth in August due to stretched affordabilit ...Full Story»

Italy Jobless Rate Falls To 6.0%, Lowest Since June 2007 (02 hr(s), 25 min(s), 21 sec(s) ago)
(RTTNews) - Italy's unemployment rate decreased further in July to the lowest level in just ov ...Full Story»

Russia Manufacturing Downturn Eases In August (02 hr(s), 52 min(s), 21 sec(s) ago)
(RTTNews) - Russia's factory activity deteriorated further in August amid continued contractio ...Full Story»

India Manufacturing Growth Strongest In Over 17 Years (04 hr(s), 20 min(s), 21 sec(s) ago)
(RTTNews) - India's manufacturing sector expanded at the quickest pace in seventeen-and-a-half ...Full Story»