MNI BRIEF: UK House Prices Rise, Undimmed By Cost-of-Living

UK house prices rose 11.0% year-on-year in July, despite consumer confidence sitting at an all time low, according to the latest Nationwide House Price Index.

Although facing headwinds including a string of rate rises from the Bank of England in recent months and consumer inflation sitting just shy of 10%, prices continue to rise, Nationwide chief economist Robert Gardner said Tuesday. However, with buyer activity slowing and mortgage applications dropping, prices are likely to cool in coming months.

“We continue to expect the market to slow as pressure on household budgets intensifies in the coming quarters," Gardner said. "Moreover, the Bank of England is widely expected to raise interest rates further, which will also exert a cooling impact on the market if this feeds through to mortgage rates."