- Prior +0.3%; revised to +0.2%
- House prices +11.0% vs +11.5% y/y expected
- Prior +10.7%
A modest increase in UK house prices for July, which represents a twelth consecutive monthly increase. Meanwhile, annual house price growth stays elevated and is seen in the double-digits for a ninth month in a row. Nationwide notes that:
“Demand continues to be supported by strong labour market conditions, where the unemployment rate remains near 50-year lows and with the number of job vacancies close to record highs. At the same time, the limited stock of homes on the market has helped keep upward pressure on house prices.
“We continue to expect the market to slow as pressure on household budgets intensifies in the coming quarters, with inflation set to reach double digits towards the end of the year. 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."