UK House Prices Fall 0.2% in August

UK house prices unexpectedly fell by 0.2% in August, marking the first monthly decline since April, according to Nationwide Building Society. Despite this drop, the annual growth rate increased to 2.4%, the fastest since December 2022, with the average price sitting at £265,375. Economists had anticipated a slight increase instead of a decline, suggesting ongoing affordability issues despite recent interest rate cuts from the Bank of England. Experts indicated that while the housing market remains subdued, it shows resilience amidst high interest rates and elevated property values relative to earnings. Predictions for the remainder of the year remain optimistic, with forecasts suggesting potential annual growth of around 2.5% to 3% by December. However, confidence in the market may be fragile due to upcoming fiscal policies and the broader economic landscape.