UK house price growth slows in August, says Nationwide

UK home value progress slowed in August, bringing it again all the way down to round its slowest tempo in a yr, in line with a number one housing index.The common value of a British residence grew by 2.1% within the yr to the top of final month, a slowdown from the two.4% annual progress recorded in July, in accordance information from lender Nationwide.August’s fee of progress is similar as Nationwide recorded in June this yr. The final time home value progress was this gradual was in July 2024.It comes amid studies that the federal government is contemplating an overhaul of property taxes in a bid to lift cash and increase the housing market within the autumn Finances.Robert Gardner, chief economist at Nationwide Constructing Society, advised the BBC the UK wants a tax system which “permits individuals to maneuver extra successfully”.”It is positively price taking a look at UK property taxes,” he added.The common UK residence now prices £271,079, in line with the lender’s information, which is predicated by itself mortgage exercise.Regardless of the drop within the tempo of progress, Mr Gardner mentioned housing stays unaffordable for a lot of consumers.”Home costs are nonetheless excessive in comparison with family incomes, making elevating a deposit difficult for potential consumers, particularly given the extraordinary value of dwelling pressures in recent times,” he mentioned.The information comes as the federal government considers methods to shake up how housing is taxed within the UK, in line with studies.The introduction of Nationwide Insurance coverage tax for landlords, eradicating the capital features tax aid on promoting pricier houses, abolishing stamp responsibility, and changing council tax with a nationwide property tax are among the choices reportedly being mentioned.Specialists’ views on the adjustments are combined, with some arguing the abolition of stamp responsibility particularly might pace up the housing market however value billions in misplaced tax income.