Residential property prices in the UK rose marginally in August to reach yet another all-time high, according to fresh data from Nationwide.
The latest house price index compiled by the building society reveals that the average price of a home increased by 0.6% month-on-month to £206,145.
Prices in August were 5.6% higher than a year earlier, compared with 5.2% in July.
Nationwide said that the pick-up in home price growth is “somewhat at odds” with signs that housing market activity has slowed in recent months, largely as a consequence of EU referendum uncertainty and the introduction of additional stamp duty on second homes which has “softened” new buyer enquiries, as reflected by the fact that UK mortgage approvals dropped to an 18-month low in July.
Nationwide's chief economist, Robert Gardner, explained that the slump in the number of buyers has been offset by a fall in the volume of homes being put up for sale.
“The decline in demand appears to have been matched by weakness on the supply side of the market,” said Gardner.
He added: “Surveyors report that instructions to sell have also declined and the stock of properties on the market remains close to 30 year lows. This helps to explain why the pace of house price growth has remained broadly stable.”