United Kingdom: Housing market stays fairly lifeless in August
According to the Nationwide Building Society (NBS), house prices in the United Kingdom were flat month-on-month in August, down from July’s 0.3% uptick. On an annual basis, house prices rose 0.6%, up from July’s 0.3% increase. The average house price in August was GBP 216,096 (August 2018: GBP 214,745). The broad picture is unchanged; the property market is in a soft patch, weighed on by weak consumer sentiment and Brexit uncertainty.
The market is likely to stay subdued in coming months, and Brexit developments will be key. While a no-deal Brexit could dampen demand and see prices fall, a smooth withdrawal from the EU should support sentiment and see price growth pick up, amid a favorable backdrop of healthy demographics and a strong labor market.