UK house price rise slips back to five-year low: Nationwide

[LONDON] British house prices grew by a weaker than expected 2.0 per cent in August, mortgage lender Nationwide said, slipping back to a level last seen in June when prices rose at their slowest in five years.

The slowdown is the latest sign of how the housing market has slowed since the 2016 Brexit vote.

Economists taking part in a Reuters poll had expected prices to rise by a stronger 2.7 per cent.

In monthly terms, prices fell by 0.5 per cent in August from July. The Reuters poll had pointed to a 0.1 per cent monthly increase.

Nationwide's measure of house prices was showing increases of about 5 per cent a year shortly before the 2016 referendum decision to leave the European Union. Britain's overall economy has slowed since the vote.

Nationwide said it continued to expect house prices to rise by 1 per cent in 2018.

A Reuters poll published earlier this week showed economists expect house prices to increase nationally by 2 per cent this year and next.

REUTERS