# UK house prices speed up but slowdown coming, Nationwide says
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-01
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: British House Prices Rise in August, but Surge Expected to
Meta Description: Discover how British house prices rose in August at a faster monthly pace, despite a cooling market due to surging energy prices and interest rate hikes.
URL: https://financedigest.com/uk-house-prices-speed-up-but-slowdown-coming-nationwide-sayshtml

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LONDON (Reuters) – British house prices rose at a faster monthly pace in August than in July but the market is set to cool as surging energy prices hit households and the Bank of England pushes up interest rates, mortgage lender Nationwide said on Thursday.

House prices last month were 0.8% higher than in July when they rose by 0.2% from June. That was a bigger increase than the median forecast of a 0.1% rise in a Reuters poll of economists.

Prices were 10.0% higher than in August 2021, a slowdown from July’s 11.0% increase but also above the [Reuters poll](https://www.financedigest.com/germany-home-prices-to-sink-nearly-6-this-year-reuters-poll.html "Germany home prices to sink nearly 6% this year – Reuters Poll") forecast for a rise of 8.9%.

Robert Gardner, Nationwide’s chief economist, said there were signs that the [housing market](https://www.financedigest.com/uk-housing-market-weakness-continues-improvement-on-the-horizon-rics.html "UK housing market weakness continues, improvement on the horizon – RICS") was losing momentum after the surge in demand for bigger homes during the COVID-19 pandemic.

We [expect the market to slow](https://www.financedigest.com/dollar-set-for-weekly-loss-amid-expectations-fed-will-slow-hikes.html "Dollar set for weekly loss amid expectations Fed will slow hikes") further as pressure on household budgets intensifies in the coming quarters,” Gardner said.

Britain’s most widely followed inflation index rose by 10.1% in the 12 months to July, a 40-year high, and is [set to climb further on the back of accelerating power](https://www.financedigest.com/negotiating-our-future-youth-set-to-grab-power-roles-at-cop27.html "‘Negotiating our future’: Youth set to grab power roles at COP27") prices.

A separate Reuters poll of economists published on Wednesday pointed to a 7.0% [increase in home prices](https://www.financedigest.com/syngenta-4q-profit-falls-as-raw-material-prices-increase.html "Syngenta 4Q profit falls as raw material prices increase") this year before a gain of just 1.0% next year and a further 3.0% rise in 2024.

The BoE has raised interest rates six [times since](https://www.financedigest.com/soccer-arsenal-reach-womens-champions-league-semis-for-first-time-since-2013.html "Soccer-Arsenal reach Women’s Champions League semis for first time since 2013") December as it tries to deal with the surge in inflation.

(Writing by William Schomberg, Editing by Paul Sandle)


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