UK House Prices Edge Up 0.2% in August

Nationwide said UK annual house price growth was little changed in August at 1.6%, compared with 1.4% in July. Prices rose 0.2% on the month after seasonal adjustment, reversing a revised 0.1% fall in July.

The average price of a home, which is not seasonally adjusted, was £275,465 in August, down from £276,581 in July.

Robert Gardner, Nationwide’s chief economist, said market activity and house prices have remained subdued, in part reflecting the uncertain economic backdrop. He pointed to the conflict in the Middle East putting upward pressure on energy prices and market interest rates.

Bank Rate remains at 3.75%, where the Bank of England has held it since December 2025. The next decision is due on 17 September. Most borrowers on fixed-rate mortgages will not see an instant change in monthly payments. New fixed deals are priced off market expectations rather than a single house-price print.

For people saving a deposit, a typical home at £275,465 implies a 10% deposit of about £27,550. Soft annual growth of 1.6% does not by itself make that target easier if mortgage rates stay elevated.

Gardner said underlying affordability is improving because house price growth remains well below earnings growth, although some of those gains have been offset by higher mortgage rates. How that shows up for any one household depends on their local market, the size of deposit they need, and the rate on offer when they come to borrow.