1 September 2026
If you are covering the Nationwide House Price Index, please see the following comment from Ian Futcher, financial planner at Quilter:
“According to Nationwide, UK house prices rose marginally by 0.2% in August, while annual growth increased to 1.6%, taking the average property price to £275,465.
“The housing market remains caught between resilient demand and uncertainty over where borrowing costs go next. While buyers have become more accustomed to a higher interest rate environment, many are still reluctant to make major financial commitments when the outlook continues to shift.
“Over recent months, expectations for interest rates have been driven by the stop-start nature of the conflict in the Middle East. Whenever tensions appear to ease, hopes of lower borrowing costs begin to build. However, as concerns over energy prices and inflation resurface, markets quickly start questioning whether rates may need to remain higher for longer.
“That leaves the housing market in something of a holding pattern ahead of the Bank of England's next interest rate decision on 17 September. While a hold remains the most likely outcome, it is becoming increasingly difficult to call with confidence. Markets are still pricing in the possibility of one further rate rise this year, while others argue policymakers may wait until after the Budget before acting so they can assess whether any fiscal measures help bring inflation under control or add to inflationary pressures instead.
“For borrowers, the key message is that rates may not have peaked. Many had hoped the conversation would be focused on when cuts might arrive, but there remains a realistic possibility that borrowing costs move higher before they move lower. Until that uncertainty lifts, buyer confidence is likely to remain subdued.
“Ultimately, demand for homeownership remains strong, but affordability and interest rate expectations will continue to dictate the pace of the market. Greater confidence that borrowing costs are on a stable path would provide a meaningful boost to activity, but for now caution continues to prevail.”
