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

UK House Price Growth Slows to 1.8% in July Amid Market Uncertainty

UK house price growth slowed to 1.8% in July, down from 2.2% in June, according to data from Nationwide Building Society. The average UK property price now stands at £277,542, with monthly prices remaining flat.

The deceleration in annual growth comes as elevated mortgage rates and uncertainty over potential tax changes continue to affect the housing market. Industry professionals describe current conditions as a buyers’ market, with buyers negotiating harder and sellers adjusting asking prices.

Nationwide’s Chief Economist, Robert Gardner, noted that market activity and house prices have remained soft in recent months, partly due to an uncertain economic backdrop. Geopolitical tensions and recent increases in energy prices and market interest rates have also contributed to the subdued market.

The Bank of England held the base rate at 3.75% for the fifth consecutive meeting this week. Despite this, some lenders have raised mortgage rates in recent days, adding to affordability concerns for buyers.

Regional market reports indicate that prices remain flat, with more sellers than buyers and asking prices coming down to meet market levels. Industry feedback suggests that buyers are well informed and willing to negotiate, while sellers who price their properties too ambitiously are seeing longer selling times.

Taxation uncertainty is also dampening market confidence, with concerns about potential changes to property taxes influencing buyer demand. The market’s future trajectory is expected to depend on inflation trends and mortgage pricing, with industry professionals suggesting that greater policy certainty and more predictable borrowing costs could help rebuild buyer confidence.