Business & Finance

UK house prices increase for first time since April

Average UK home values rose 0.2% in August as the market anticipates future interest rate decisions.

Updated Sep 1, 2026 · 09:19 UTC1 reports

The short version

Average UK house prices rose 0.2% month-on-month in August to £275,465, marking the first increase since April.
Year-on-year house price growth reached 1.6% in August, rising from 1.4% in July but below analyst forecasts of 2%.
Market participants describe the housing sector as being in a holding pattern ahead of the Bank of England's September rate decision and potential rate shifts by December.

Nationwide reported average UK property prices increased 0.2% in August to £275,465, exceeding the forecasted 0.1% rise.[The Guardian]
Prices grew 1.6% on an annual basis in August, up from a 1.4% year-on-year gain in July.[The Guardian]
Nationwide revised its previously reported 0.1% month-on-month rise for July to a 0.1% decline.[The Guardian]
Average home values remain more than £3,000 lower than the peak estimated by Nationwide in April.[The Guardian]
The Bank of England's monetary policy committee is scheduled to vote on the base interest rate on September 17.[The Guardian]

Financial analysts note uncertainty over whether the Bank of England will adjust interest rates from 3.75%, though markets are pricing in a potential 0.25% increase by December.[The Guardian]
It remains uncertain how significantly recent energy price cap hikes will affect home buying and selling activity during the upcoming winter.[The Guardian]