UK Annual House Price Growth Decelerates in July, Monthly Prices Edge Up

• UK annual house price growth slowed to +1.8% in July.
• Monthly prices edged up +0.1%, showing some market resilience.
• Geopolitical tensions and rate hike fears cited as headwinds.

UK annual house price growth decelerated to +1.8% in July, down from +2.2% in June and slightly below the +1.9% forecast, according to Nationwide Building Society. On a monthly basis, prices edged up +0.1%, aligning with expectations and following a flat reading in June. The average UK dwelling price stood at £277,542. This slowdown in annual growth reflects a degree of market softness, attributed by sources to geopolitical tensions, including the Middle East conflict, and concerns over rising interest rates. Despite these headwinds, the monthly increase suggests some resilience, with buyers reportedly adapting to higher borrowing costs better than anticipated.