The average house price has risen by £50,000 in two years
House prices rose 0.8% month-on-month in August, Nationwide said today, with annual growth softening to 10% from 11% in July. The average price stood at £273,751, an increase of nearly £50,000 over two years.
A shortage of housing stock means price growth has remained steady despite the impact of inflation and higher borrowing costs.
Chief National Economist Robert Gardner added: “There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer inquiries in recent months and the number of mortgage approvals for home purchases falling below pre-pandemic levels.”
He expects the market to slow further as pressures on household budgets intensify in the coming quarters.
FTSE 100 weakens, pound below $1.16
The new month picks up where the previous one left off, with CMC Markets forecasting the FTSE 100 to drop 40 points to 7,244.
London’s elite fell 1.9% in August, but the damage caused by the worsening economic outlook was greater for the FTSE 250 index, which fell 5.5%.
Stock market sentiment eased after Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole last Friday, in which he stressed the need for a “restrictive policy stance” through higher interest rates for some time.
US stock markets have since fallen for four straight sessions, with the Dow Jones Industrial Average down another 0.9% last night.
Demand fears caused by the economic outlook and recent Covid restrictions in China left Brent crude at $95 a barrel, compared with $105 on Monday.
And the flight to the safe-haven dollar continued, with the pound now below $1.16 despite the prospect of another big rate hike from the Bank of England this month. Capital Economics warned yesterday that the pound was heading for a record low of $1.05.