UK house prices witnessed by further record weakness in August, according to the latest Nationwide house price index on Friday.
House prices fell 0.8% month-on-month in August, picking up pace from a 0.3% fall in July.
On an annual basis, prices are now 5.3% below their August 2022 peak, accelerating from a 3.8% fall in July. Nationwide noted this was the weakest rate since July 2009.
The average house price in August was GBP259,153 on a non-seasonally adjusted basis, down from GBP260,828 the previous month.
“The softening is not surprising, given the extent of the rise in borrowing costs in recent months, which has resulted in activity in the housing market running well below pre-pandemic levels,” the company’s chief economist said.
“For example, mortgage approvals have been around 20% below the 2019 average in recent months and mortgage application data suggests the weakness has been maintained more recently.”
“Nevertheless, a relatively soft landing is still achievable, providing broader economic conditions evolve in line with our (and most other forecasters’) expectations.”
By Heather Rydings, Alliance News senior economics reporter
