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Economic Buzz: UK house price growth softens in August
01-Sep-2025 15:09
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.

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.

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