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

UK House Prices Increase for First Time Since April, Reports Nationwide

UK house prices rose by 0.2% in August, marking the first monthly increase since April, according to Nationwide. On an annual basis, house prices were up 1.6% compared to August last year.

Nationwide reported that the average price of a UK home reached £275,465 in August. This follows three consecutive months of price declines, with the average property still valued over £3,000 less than the £278,880 recorded in April.

Analysts had forecast a 0.1% monthly rise, but the actual increase was 0.2%. The annual increase of 1.6% in August was higher than the 1.4% year-on-year rise seen in July, though it fell short of economists’ expectations of a 2% annual increase.

The report notes that buyers and sellers remain in a “holding pattern” ahead of the Bank of England’s next monetary policy committee meeting on 17 September, where a decision will be made on whether to raise the base interest rate from its current 3.75%. Markets do not expect a rate rise this month but are pricing in a possible 0.25% increase by December.

Nationwide’s chief economist, Robert Gardner, stated that the recent increase in the energy price cap has not yet affected buying and selling activity. He also noted that underlying affordability is improving, as house price growth remains below earnings growth, though higher mortgage rates have offset some of these gains.

For letting agents and inventory clerks, these developments may signal a stabilising market after several months of decline, with affordability and interest rates remaining key factors to monitor in the coming months.