UK house prices see biggest monthly fall since July 2012 in August
House prices were down 0.5% on the month compared with a 0.7% increase in July, missing expectations for a 0.1% rise.
On the year, prices ticked up 2%, down from a 2.5% jump the previous month and below expectations for a 2.7% increase.
Nationwide's chief economist Robert Gardner said that despite the softening, annual house price growth remains within the fairly narrow range of around 2-3% which has prevailed over the past 12 months, suggesting little change in the balance between demand and supply in the market.
"Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates. Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on house price growth and market activity this year, though borrowing costs are likely to remain low," Gardner said. ■