Business news live: UK house prices fall with market ‘struggling to find its feet’ after stamp duty change
House prices fall 0.1% in August
We’ll start with UK house prices – and the latest Nationwide data shows a 0.1% drop month on month.
It was a surprise drop overall despite known struggles in the market, with the average price of a property in the UK now at £271,079.
However, year on year there is still growth in prices – though it is slowing.
“The relatively subdued pace of house price growth is perhaps understandable, given that affordability remains stretched relative to long-term norms,” Robert Gardner, Nationwide’s Chief Economist, said.
“House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years.
“Combined with the fact that mortgage costs are more than three times the levels prevailing in the wake of the pandemic, this means that the cost of servicing a mortgage is also a barrier for many. Indeed, an average earner buying the typical first-time buyer property with a 20% deposit faces a monthly mortgage payment equivalent to around 35% of their take-home pay, well above the long run average of 30%.”
Karl Matchett1 September 2025 08:11
