Nationwide’s August House Price Index shows a softening of growth, with prices down 0.1% since July. But with wider conditions supporting buyer demand, industry commentators said the news is ‘no surprise’ and will ‘drive a strong finish to the year for the housing market’.
‘August saw a slight softening in the rate of annual house price growth to 2.1%, from 2.4% in July’, said Robert Gardner, Nationwide’s chief economist. ‘Prices dipped by 0.1% month on month, after taking account of seasonal effects’.
“The relatively subdued pace of house price growth is perhaps understandable, given that affordability remains stretched relative to long-term norms. House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years.
“However, affordability should continue to improve gradually if income growth continues to outpace house price growth as we expect. Borrowing costs are likely to moderate a little further if Bank Rate is lowered again in the coming quarters. This should support buyer demand, especially since household balance sheets are strong and labour market conditions are expected to remain solid.”
Reaction to the figures was resoundingly positive, with Benham and Reeves director Marc von Grunherr saying the slight summer dip ‘is no surprise’. He added:
“Now that September has arrived it brings with it a greater degree of normality where our day to day routines are concerned and so we should see momentum return quickly, with greater consistency in both market activity and house price growth.”
Yopa CEO Verona Frankish said the annual picture shows growth and resilience and suggests a strong end to the year. She added:
“With the holiday season behind us, attention now turns to the final run up to Christmas, which is traditionally one of the busiest periods of the year and one of the hard deadlines many buyers and sellers set for their completion data.
“The added motivation of moving before the festive season, combined with improving mortgage affordability, should help drive a strong finish to the year for the housing market.”
Nathan Emerson, CEO at Propertymark, said he was encouraged by the resilience of the market despite ongoing economic turbulence, and pointed to the ‘many positive factors to reflect upon’:
“We have witnessed a drop in the number of fall-throughs, a trend that demonstrates an uplift in the number of property transactions completed, and the number of overall listings reaching an all-time high.”
Iain McKenzie, CEO of The Guild of Property Professionals, urged the sector to look beyond the headline figure and appreciate the market’s underlying strength.
He explained:
“We’ve witnessed a solid performance in 2025, buoyed by the Bank of England’s recent interest rate cuts, which are boosting sentiment and are set to further inject momentum into the property market.
“Transaction levels are a key and encouraging indicator. We’re observing a healthy recovery, with July 2025 showing a 4% increase year-on-year and a 1% rise from June. We are firmly on track to achieve 1.1 million transactions this year, a true testament to the market’s resilience. Furthermore, mortgage approvals in June were up 5.6% annually, aligning well with the five-year average and underscoring robust buyer confidence.
“Despite a more muted economic outlook and persistent price sensitivity, the housing market is proving its adaptability and capacity to stand firm. It’s not merely recovering; it’s recalibrating and establishing a new equilibrium, presenting opportunities for both buyers and sellers.”
