Investors were mulling the latest survey from Nationwide, which showed that annual house price growth eased less than expected in August but there are signs of a further slowdown to come.
Annual house price growth slowed to 10% from 11% in July, but was ahead of expectations for growth of 8.9%. On the month, meanwhile, house prices rose 0.8% in August following a 0.2% increase the month before, and versus expectations for a 0.1% uptick.
Nationwide 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, the slowdown to date has been modest, and combined with a shortage of stock on the market, has meant that price growth has remained firm.
“We expect the market to slow further as pressure on household budgets intensifies in the coming quarters, with inflation set remain in double digits into next year. Moreover, the Bank of England is widely expected to continue raising interest rates, which will also exert a cooling impact on the market if this feeds through to mortgage rates, which have already increased noticeably in recent months.”