UK house prices cool in August as supply rises and tax changes loom

UK house price growth has cooled in recent weeks as rising supply and uncertainty over possible tax changes prompt sellers to cut prices and buyers to hesitate, industry figures show. Nationwide Building Society reported a small monthly fall of 0.1 percent in August, taking annual growth to 2.1 percent, while the property portal Zoopla recorded slower year‑on‑year growth of 1.3 percent to July and said asking prices were being trimmed across some markets.

Nationwide said the average UK home cost £271,079 in August, down slightly on the prior month after a 0.5 percent rise in July. Robert Gardner, the lender's chief economist, said the subdued pace of growth reflected stretched affordability and elevated mortgage costs, which make saving for a deposit and servicing a mortgage harder for many buyers. He noted that mortgage payments remain well above long run norms for typical first time buyers.

Zoopla, which uses its own data, put the average sale price at about £270,600 to July and highlighted a 10 percent increase in homes available to buyers compared with a year earlier. The portal reported that one in ten homes had an asking price cut in July, well above the five year average,...