Economists polled by Reuters had forecast a 0.1% monthly increase in UK house prices, expecting them to be 2% higher than a year ago.
In recent months, UK house prices have been rising more slowly than the consumer price index, following a sharp surge in the first quarter of the year. That earlier increase was largely driven by buyers rushing to take advantage of the final months of a property tax break.
“While the broader economic outlook remains uncertain, the housing market has demonstrated remarkable resilience in recent years,” said Amanda Bryden, Head of Mortgages at Halifax.
“Supported by improving affordability and sustained demand, we anticipate a slow but steady increase in house prices over the remainder of the year.”
Data from rival mortgage lender Nationwide showed that in August, prices unexpectedly fell by 0.1%, slowing the annual house price inflation to 2.1%, down from 2.4% in the previous month.
Rightmove, a leading UK property website, reported an increase in sales during July, as sellers lowered initial asking prices more than usual in response to the abundance of available properties.
Bryden also noted that the average house price has reached a record high, standing at £299,331 (approximately $404,366.25).
Finally, data from the Bank of England showed that mortgage approvals rose to a six-month high in July, indicating a continued underlying strength in the housing market despite economic headwinds.
