Property values hit dip

Average UK house price suffers monthly fall of 0.1%, figures show

- 

The average UK house price fell by 0.1% month on month in August, Nationwide Building Society has said.

The decline follows a 0.5% monthly increase in July.

Annual house price growth weakened to reach 2.1% in August, down from 2.4% in July.

The average UK house price in August was £271,079.

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

"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."

He added: "Combined with the fact that mortgage costs are more than three times the levels prevailing in the wake of the pandemic, this means that the cost of servicing a mortgage is also a barrier for many.