House prices edge up slightly in August... and expert expects property market bounce in coming months

See more This is Money on Google - save us as a Preferred Source Updated: 05:27 EDT, 1 September 2026 House prices edged up in August as sellers hope for a September bounce. The value of the typical home rose by 1.6 per cent in the 12 months to the end of August according to Nationwide, an improvement compared to 1.4 per cent growth in the year to July.On a monthly basis, prices rose by 0.2 per cent compared to a slight fall of -0.1 per cent the previous month. These figures are seasonally adjusted based on levels of property market activity in given months. The average property now costs £275,465, according to the building society. Little growth: The average house price in August 2026 was higher than in September on a seasonally adjusted basis, but fell in real terms Robert Gardner, Nationwide's chief economist, said property market activity could be set to pick up as months of sluggish growth had made homes more affordable. It chimes with property experts who told This is Money the property market is on the cusp of a recovery after four dismal years of stagnant sales and falling prices. However, Gardner added that buyers and sellers would be influenced by the potential impact of the conflict in Iran on energy bills, and by movements in mortgage rates. Gardner said: 'Underlying affordability is improving, as house price growth remains well below earnings growth, although some of these gains have been offset by higher mortgage rates. 'Activity should regain momentum in the quarters ahead providing the energy shock wanes and confidence returns, especially if market interest rates fall back towards pre-conflict levels.'The picture for mortgage rates is mixed. Mortgage rates have risen this year, but are still lower than they were throughout much of 2023 and 2024. Those coming off two-year fixed rates may still find their monthly repayments are lower or around the same level when they fix again.Jason Tebb, president of property website On The Market, added: 'Should mortgage rates remain stable and economic uncertainty eases, this could filter through to renewed activity and sales in the autumn. 'Inactivity isn't an option for many, even if a new Prime Minister and another Budget brings an inevitable degree of doubt.'The picture for energy bills is also volatile due to disruption in global oil and gas supplies caused by the war in Iran, leading to uncertainty for households. The price cap, which governs bills for those not on fixed deals, will rise by 4 per cent in October bringing the typical household's annual outgoings up by £60 per year to £1,723. EDF has said average dual fuel bills in 2030 will be around 13 per cent higher than in the final quarter of 2025 if recent government interventions are not extended.How to find a new mortgage Mortgage rates have jumped as conflict with Iran has driven up inflation expectations and dashed hopes of interest rate cuts.If you need a mortgage because you are buying a home, or your current fixed rate deal is due to end, you should explore your options as soon as possible. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with expert mortgage advice.Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.Or use L&C’s online Mortgage Finder to search thousands of deals from more than 90 different lenders to discover the best deal for you.Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage