House prices dip to average £210,495 in August

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House prices have dropped in August amid fears that pressure on household finances from Brexit-fuelled inflation is hitting buyer confidence, according to an index.

Nationwide Building Society said property values fell for the first time since May, down 0.1% month on month in August to an average of £210,495.

This saw the annual rate of growth fall from 2.9% in July to 2.1%, which was also the weakest since May, when the yearly rate hit its lowest level for four years.

Annual house price growth has more than halved over the past year, having stood at 5.6% last August.

Nationwide said the slowdown was further signs of a cooling property market and wider economy and suggested the impact of soaring prices outstripping wage growth may be taking its toll.

Robert Gardner, chief economist at Nationwide, said: "It may be that mounting pressure on household finances is exerting a drag.

"Wages have been failing to keep up with the cost of living in recent months and consumer sentiment has weakened."

He added: "Ultimately, housing market developments will depend on wider economic performance.

"The UK economy slowed noticeably in the first half of the year, and there has been little to suggest a significant rebound in the months ahead."