UK house prices are rising, but a slowdown is expected

UK house prices are rising, but a slowdown is expected
UK house prices are rising, but a slowdown is expected

According to Nationwide’s monthly survey, July prices rose 0.8% month-on-month

UK house prices rose at a faster monthly rate in August than in July, but the market is cooling as rising energy prices hit households and the Bank of England continued to raise key interest rates, national lender Nationwide said in Thursday, quoted by Reuters.

Home prices last month were 0.8% higher than in July, when they rose 0.2% on a monthly basis. That was a bigger increase than the average forecast of 0.1 percent growth in a Reuters poll of economists.

Robert Gardner, Nationwide’s chief economist, said there were signs the housing market was losing momentum following a surge in demand for larger homes during the Covid-19 pandemic.

“We expect the market to slow further as pressures on household budgets intensify in the coming quarters,” added Gardner.

Britain’s most widely watched inflation index rose 10.1% in the 12 months to the end of July, a 40-year high, and is expected to rise further on the back of ever-higher electricity.

A separate Reuters poll of economists released on Wednesday showed house prices are expected to rise 0.7 percent this year, 0.1 percent next year and 3.0 percent in 2024.

The Bank of England has raised key interest rates six times since December as it tries to fight inflation.

The article is in bulgaria

Tags: house prices rising slowdown expected

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