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UK house prices speed up but slowdown coming, Nationwide says
Published by Jessica Weisman-Pitts
Posted on September 1, 2022
2 min readLast updated: February 4, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on September 1, 2022
2 min readLast updated: February 4, 2026
LONDON (Reuters) – British house prices rose at a faster monthly pace in August than in July but the market is set to cool as surging energy prices hit households and the Bank of England pushes up interest rates, mortgage lender Nationwide said on Thursday.
LONDON (Reuters) – British house prices rose at a faster monthly pace in August than in July but the market is set to cool as surging energy prices hit households and the Bank of England pushes up interest rates, mortgage lender Nationwide said on Thursday.
House prices last month were 0.8% higher than in July when they rose by 0.2% from June. That was a bigger increase than the median forecast of a 0.1% rise in a Reuters poll of economists.
Prices were 10.0% higher than in August 2021, a slowdown from July’s 11.0% increase but also above the Reuters poll forecast for a rise of 8.9%.
Robert Gardner, Nationwide’s chief economist, said there were signs that the housing market was losing momentum after the surge in demand for bigger homes during the COVID-19 pandemic.
“We expect the market to slow further as pressure on household budgets intensifies in the coming quarters,” Gardner said.
Britain’s most widely followed inflation index rose by 10.1% in the 12 months to July, a 40-year high, and is set to climb further on the back of accelerating power prices.
A separate Reuters poll of economists published on Wednesday pointed to a 7.0% increase in home prices this year before a gain of just 1.0% next year and a further 3.0% rise in 2024.
The BoE has raised interest rates six times since December as it tries to deal with the surge in inflation.
(Writing by William Schomberg, Editing by Paul Sandle)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually and can impact interest rates and economic policies.
Interest rates are the amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal. They can influence borrowing costs and economic activity.
The housing market refers to the supply and demand for residential properties. It is influenced by factors such as interest rates, economic conditions, and consumer confidence.
A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral. Borrowers repay the loan amount plus interest over a specified period.
A housing price index measures changes in the price of residential properties over time. It helps track market trends and assess the value of real estate investments.
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