House price growth slowed in July as housing market activity remained subdued against a backdrop of economic uncertainty, according to Nationwide.
The building society’s latest House Price Index showed annual house price growth eased to 1.8% in July, down from 2.2% in June.
On a seasonally adjusted monthly basis, prices rose by 0.1%, following broadly flat growth the previous month.
The average UK house price reached £277,542 in July, compared with £277,484 in June.
Nationwide’s analysis also found that people are now spending an average of 14 years in the same home, although the figure differs significantly depending on housing tenure.
Homeowners who own their property outright typically remain in the same home for 24 years, while private renters stay in one property for around five years on average.
The research also showed that around three-quarters of home moves during 2024/25 took place within the same housing tenure, rather than involving a switch between renting and homeownership.
Nationwide chief economist Robert Gardner said: “Market activity and house prices have remained soft in recent months, in part reflecting the uncertain economic backdrop.
“Geopolitical tensions remain high, with the conflict between Iran and the US again exerting upward pressure on energy prices and market interest rates in recent weeks. Financial market expectations for the future path of Bank Rate have been volatile, reflecting shifting views about the inflationary implications of events at home and abroad.
“Despite the ongoing risks from the latest energy price shock, the Monetary Policy Committee can take some comfort from the fact that consumer price inflation declined further in June. Signs that wage growth has continued to ease gives policymakers more breathing space to assess the extent to which tighter policy is necessary to ensure inflation returns to target.”
OnTheMarket president Jason Tebb said: “Average property values were flat on a monthly basis as focused, price-sensitive buyers negotiate, while sellers realise they will struggle to sell over-ambitiously priced homes when there is more stock to choose from.
“Despite the impact of renewed hostilities in the Middle East on inflation and subsequently interest rates, stalling the expected downwards momentum of base rate this year, the resilience of the market is evident.
“The signs are that the market has steadied itself and buyers and sellers are getting on with it. The Bank of England’s decision to hold interest rates again yesterday for the fifth consecutive meeting is having a steadying effect, suggesting a calm, considered approach with no need to panic.”
