House prices rose slightly in August as sellers hoped for a recovery in September.
According to Nationwide, the value of the typical home rose by 1.6 percent in the 12 months to the end of August, an improvement on the 1.4 percent growth in the year to July.
On a monthly basis, prices rose by 0.2 percent, compared to a slight decline of -0.1 percent the month before.
These figures are seasonally adjusted based on real estate market activity in certain months.
According to the building society, the average property now costs £275,465.
Little growth: The average house price was higher in August 2026 than in September on a seasonally adjusted basis, but fell in real terms
Robert Gardner, Nationwide’s chief economist, said property market activity could pick up as months of slow growth had made housing more affordable.
It’s true with real estate experts who told This is Money The real estate market is on the eve of recovery after four dismal years of stagnant sales and falling prices.
However, Gardner added that buyers and sellers would be influenced by the potential impact of the conflict in Iran on energy bills, as well as movements in energy bills. mortgage interest.
Gardner said: ‘Underlying affordability is improving as house price growth remains well below earnings growth, although some of these gains have been offset by higher mortgage rates.
“Activity should regain momentum in the coming quarters, provided the energy shock subsides and confidence returns, especially if the market allows it interest rates returning to pre-conflict levels.’
The picture for mortgage interest rates is mixed.
Mortgage rates have risen this year, but are still lower than they were for much of 2023 and 2024.
Those who get out of a two-year fixed rate could still find that their monthly repayments are lower or around the same level if they get locked in again.
Jason Tebb, president of real estate website On The Market, added: “If mortgage rates remain stable and economic uncertainty decreases, this could feed into renewed activity and sales in the fall.
‘Inaction is not an option for many, even if there is a new prime minister and another Budget brings with it an unavoidable degree of doubt.’
The picture for energy bills is also volatile due to the disruption to global oil and gas supplies due to the war in Iran, creating uncertainty for households.
The price cap, which applies to bills for those without a fixed deal, will rise by 4 per cent in October, increasing the average household’s annual spend by £60 a year to £1,723.
That’s what EDF said the average bill for two fuels will be about 13 percent higher in 2030 then in the last quarter of 2025 if the recent government interventions are not extended.
