UK July Nationwide house prices -0.2% vs -0.2% m/m expected

• Prior +0.1%

The annual reading falls further to -3.8%, which is the weakest since July 2009. This comes after another 0.2% drop on the month, which is now seeing the average price of dwellings in the UK fall to £260,828. Nationwide notes that:

“While activity is likely to remain subdued in the near term, healthy rates of nominal income growth, together with modestly lower house prices, should help to improve housing affordability over time, especially if mortgage rates moderate once Bank Rate peaks.”