- July Nationwide house prices +0.1% vs +0.1% m/m expected
- Prior 0.0%
- July Nationwide house prices +1.8% vs +1.9% y/y expected
- Prior +2.2%
UK house price growth remains a little subdued in July, with the monthly estimate showing a marginal increase while the annual growth slows further to 1.8%. The average price of a dwelling in the UK is now seen at £277,542 from Nationwide’s measure.
Overall, there is a bit of softness in the market but that is not all too surprising given recent economic uncertainty from the Middle East conflict as well as some political shenanigans in the UK. But as a whole, the market remains rather resilient still with house prices still keeping higher compared to the same period last year.
Nationwide notes that:
“Market activity and house prices have remained soft in recent months, in part reflecting the uncertain economic backdrop. Geopolitical tensions remain high, with the conflict between Iran and the US again exerting upward pressure on energy prices and market interest rates in recent weeks. Financial market expectations for the future path of Bank Rate have been volatile, reflecting shifting views about the inflationary implications of events at home and abroad.
Despite the ongoing risks from the latest energy price shock, the Monetary Policy Committee can take some comfort from the fact that consumer price inflation declined further in June. Signs that wage growth has continued to ease gives policymakers more breathing space to assess the extent to which tighter policy is necessary to ensure inflation returns to target.”
This article was written by Justin Low at investinglive.com.
