Nationwide House Price Index for August
Annual house price growth edged higher in August
- UK house prices fell 0.2% month on month in August
- Annual growth rate picked up to 2.4%, from 2.1% in July
- Fastest pace of annual growth since December 2022
- Energy efficiency becoming more important in influencing what buyers will pay for a home
| Headlines | Aug-24 | Jul-24 |
|---|---|---|
| Monthly Index* | 525.4 | 526.4 |
| Monthly Change* | -0.2% | 0.3% |
| Annual Change | 2.4% | 2.1% |
| Average Price
(not seasonally adjusted) |
£265,375 | £266,334 |
* Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:
“UK house prices fell by 0.2% month on month in August, after taking account of seasonal effects, but the annual rate of house price growth continued to edge higher. Average prices were up 2.4% year on year, a slight pickup from the 2.1% recorded in July and the fastest pace since December 2022 (2.8%). However, prices are still around 3% below the all-time highs recorded in the summer of 2022.
“While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience in the context of the higher interest rate environment and where house prices remain high relative to average earnings (which makes raising a deposit more challenging).
“Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”
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