Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

UK Annual House Price Growth Slows to 1.8% in July, Says Nationwide

Nationwide has reported that annual house price growth in the UK slowed to 1.8% in July, down from 2.2% in June. The average house price now stands at £277,542, with prices rising by 0.1% month-on-month.

According to Nationwide, market activity and house prices have remained soft in recent months, partly due to an uncertain economic backdrop. The lender noted that financial market expectations for the future path of the bank rate have been volatile, influenced by shifting views on inflationary pressures both domestically and internationally.

Nathan Emerson, CEO of Propertymark, commented that steady house prices reflect a housing market continuing to find balance despite ongoing economic and political changes. He highlighted that constrained housing supply, changing borrowing costs, and varying levels of buyer demand are influencing market conditions, and that national figures mask significant regional variation across the UK. Emerson also noted that the recent decision to keep interest rates unchanged provides greater certainty for borrowers and allows prospective buyers to plan with a clearer understanding of future mortgage costs.

Ian Futcher, financial planner at Quilter, described the current market as subdued, with activity far from booming. He stated that the housing market remains in a holding pattern, and any meaningful shift in house prices will depend on how inflation, interest rates, and consumer confidence evolve, as well as whether mortgage affordability improves.

Gareth Lewis, deputy CEO of MT Finance, said that Nationwide’s figures reflect a softening housing market, with valuers being cautious and buyers prepared to negotiate hard on price. Mark Harris, chief executive of SPF Private Clients, echoed this, noting that flat monthly house prices suggest buyers are taking advantage of the market and negotiating accordingly.

Despite the slowdown, some industry figures believe the market remains resilient. Nicky Stevenson, managing director of Fine & Country, said the market is holding steady in a sustainable way for both buyers and sellers, with buyers taking their time and carefully considering affordability. Nicholas Finn, managing director of Garrington Property Finders, observed that buyers currently hold the upper hand in many areas, with a surplus of homes for sale in London and the South East, allowing buyers to secure discounts off asking prices.

For letting agents and inventory clerks, these trends may signal a period of increased negotiation and slower transactions, with regional variations and buyer caution shaping the market.