After a slight reprieve in July, home price growth in the United Kingdom continued on its downward trajectory, according to the Nationwide Building Society’s August Home Price Index.
- Y-O-Y: Annual UK house price growth slowed to 10.0% in August, down from 11.0% in July and this is the 4th time in the last 5 months that the index has slowed from the prior month.
- M-O-M: Prices were up 0.8% month-on-month, this is actually up from the 0.2% reported in July.
NOTE: Home price growth remained in double digits for the tenth month in a row and month-over-month price growth reported its thirteenth successive increase.
Robert Gardner, Nationwide’s Chief Economist, said in a statement that while the housing market is off is highs this slowdown has been relatively modest. “There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer enquiries in recent months and the number of mortgage approvals for house purchases falling below pre-pandemic levels. However, the slowdown to date has been modest, and combined with a shortage of stock on the market, has meant that price growth has remained firm.
It’s important to remember that last month the average interest rate on new mortgages rose 18 basis points to 2.33%, up from 1.5% last November. The average mortgage rate on new loans is back at levels last seen in 2016.