Nationwide reports drop in house prices

UK house prices unexpectedly fell in August, with Nationwide reporting a 0.1% decline to an average of £271,079. Economists had predicted a 0.2% rise, but instead prices slipped for the fourth time in six months, leaving values 0.4% lower over the summer despite a brief gain in July. Annual house price inflation slowed to 2.1%, down from 2.4% in July and over 4% earlier in the year. Nationwide’s chief economist Robert Gardner said affordability pressures remain intense, with first-time buyers now spending about 35% of their take-home pay on mortgage repayments, compared to a long-run average of 30%. Higher living costs and stubbornly elevated mortgage rates continue to squeeze demand. Analysts expect subdued growth in the housing market through the remainder of the year, unless wage growth and gradual interest rate cuts ease affordability pressures. 

BBC News (02/09/2025)   Daily Mail (02/09/2025)   The Daily Telegraph (02/09/2025)   The Standard (02/09/2025)