House prices edge higher in July amid ‘soft’ market, says Nationwide

UK house prices returned to muted growth in July – but the market remains “soft” amid an uncertain economic and geopolitical backdrop, according to new figures.Nationwide Building Society said the average house price edged 0.1% higher month on month to £277,542 in July, which comes after two months of falling or stagnant prices.On an annual basis, price growth slowed sharply to 1.8%, down from 2.2% in June.It comes after lenders have been hiking their mortgage rates in recent weeks, despite the base rate being held at 3.75%.The Bank of England kept rates unchanged again on Thursday, but cautioned inflation was set to rise by the end of the year due to the Iran war and signalled it stood ready to hike if the conflict and its effects on prices was prolonged.Robert Gardner, Nationwide’s chief economist, 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.”