UK housing market shrugs off Brexit uncertainty in August, Nationwide data shows

UK house price growth accelerated in August as demand continued to outstrip the supply of properties for sale, according to Nationwide on Wednesday.

House prices rose 0.6% in August compared to a month ago, following a 0.5% monthly increase in July. The annual rate of growth in August was 5.6%, up from a 5.2% gain in July.

The average price of a home in the UK was £206,145 this month.

Nationwide’s chief economist Robert Gardner said while demand has waned since the Brexit vote, there have been less properties available on the market.

“New buyer enquiries have softened as a result of the introduction of additional stamp duty on second homes in April and the uncertainty surrounding the EU referendum. The number of mortgages approved for house purchase fell to an eighteen-month low in July,” he said.

“However, the decline in demand appears to have been matched by weakness on the supply side of the market. Surveyors report that instructions to sell have also declined and the stock of properties on the market remains close to thirty-year lows. This helps to explain why the pace of house price growth has remained broadly stable.”

Looking ahead, Gardner said demand will be determined by the outlook on the labour market, economy and confidence among prospective buyers.

The economist believes that the Bank of England’s decision to cut interest rates and boost stimulus measures will provide some support for households and the housing market.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “The housing market continues on its upward trajectory, as yet undeterred by the political machinations of Brexit. While the housing market will of course be impacted by any economic dent that appears in the UK as a result of the referendum result, house prices will continue to be supported by ultra low mortgage rates, the Help to Buy scheme, and a substantial imbalance in supply and demand.”