UK annual house price growth picked up to 1.6% in August, from a downwardly revised 1.4% in July, according to Nationwide Building Society’s monthly House Price Index published on 1 September 2026. Prices rose 0.2% month on month on a seasonally adjusted basis, taking the index to 550.1. The unadjusted average UK house price was £275,465, slightly down from £276,581 in July. Nationwide also revised its July annual figure down from the previously reported 1.8% to 1.4%, after a system change meant some cases were left out of the original sample — a correction it said affects only the UK monthly series, not the regional data.
The figures matter most to prospective buyers, home movers and mortgage lenders tracking the pace of the UK housing market, which Nationwide’s chief economist Robert Gardner described as still subdued. Gardner attributed the sluggish activity to an uncertain economic backdrop, pointing to high geopolitical tensions — including the conflict in the Middle East, which has pushed up energy prices and market interest rates — and volatile market expectations for the future path of the Bank of England’s Bank Rate.
Gardner noted some encouraging signs alongside the caution: private-sector wage growth has eased further in recent months, which he said should give policymakers room to assess how much further tightening is needed to bring inflation sustainably back to target. He added that underlying affordability is improving, since house price growth remains well below earnings growth, even though some of that improvement has been offset by higher mortgage rates.
On the outlook, Gardner said activity “should regain momentum in the quarters ahead,” provided the energy shock fades and confidence returns — particularly if market interest rates ease back towards levels seen before the Middle East conflict.
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Nationwide Building Society – House price growth remained subdued in August
