UK July Nationwide house prices +0.1% vs +0.3% m/m expected

• Prior +0.3%; revised to +0.2%
• House prices +11.0% vs +11.5% y/y expected
• Prior +10.7%

A modest increase in UK house prices for July, which represents a twelth consecutive monthly increase. Meanwhile, annual house price growth stays elevated and is seen in the double-digits for a ninth month in a row. Nationwide notes that:

“Demand continues to be supported by strong labour market conditions, where the unemployment rate remains near 50-year lows and with the number of job vacancies close to record highs. At the same time, the limited stock of homes on the market has helped keep upward pressure on house prices.

“We continue to expect the market to slow as pressure on household budgets intensifies in the coming quarters, with inflation set to reach double digits towards the end of the year. Moreover, the Bank of England Bank of England The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy Read this Term is widely expected to raise interest rates further, which will also exert a cooling impact on the market if this feeds through to mortgage rates."