MNI: UK Nationwide House Prices Fall Back in August

--UK Nationwide house price index -0.5% m/m, 2.0% y/y

--Annual House Price Growth Drops Back To June's Pace - Which Was Slowest In 5

Years

By Jai Lakhani

     LONDON (MNI) - UK house prices in August gave back July's gains, down 0.5%

on the month, driving the annual rate 0.5pp lower to 2.0%, the latest Nationwide

House Price Index showed.

     Annual house price growth in the Nationwide series has registered between

2-3% since May 2017, but is now bumping along at the lower bounds of this range,

with the latest reading putting it back at June's pace, which was the slowest in

5 years.

     "August saw a slight softening in annual house price growth to 2.0%, from

2.5% in July... 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,"

Nationwide's Chief Economist, Robert Gardner, said.

     Gardner added that future house price growth will largely depend on the

UK's economic performance, as well as monetary conditions.

     "Looking further ahead, much will depend on how broader economic conditions

evolve, especially in the labour market, but also with respect to interest

rates," he said.

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

--MNI London Bureau; +44 207-862-7489; email: ukeditorial@marketnews.com

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