UK house price growth slows to 10 per cent as energy crisis batters Brits
Annual UK house price growth slowed to 10 per cent in August, from 11 per cent in July.
According to Nationwide HPI, prices are climbing 0.8 per cent month-on-month after taking account of seasonal effects, with the average house price rocketing by almost £50,000 in two years.
Nationwide’s Chief Economist Robert Gardner said: “There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer enquiries in recent months and the number of mortgage approvals for house purchases falling below pre-pandemic levels.”
However, he said this slowdown was “modest”, and combined with a shortage of stock on the market, has meant that price growth has remained firm.
With inflation soaring, the Bank of England is expected to continue hiking interest rates, which will also exert a “cooling impact on the market if this feeds through to mortgage rates,” Gardner said.
Nationwide index also warned that energy price cap increase, which saw the typical household set to pay £3,545 a year in October for energy bills, will have a significant impact for least energy efficient properties.
“With household budgets coming under substantial pressure, the government is likely to increase support. But, as well as addressing the rising cost of energy bills, improving the energy efficiency of the housing stock could play a crucial role,” Gardner said.
“Incentivising improvement measures, such as loft and cavity wall insulation and solar PV installations, could help limit bill increases and assist the UK towards its carbon emissions targets.”