The value of the average home increased by 0.6% in July to £217,010 according to the latest Nationwide house price index. So a modest rebound rather than anything to get wildly excited about. As a result, house prices are up by 2.5% on an annual basis, increasing from 2% last month. This means annual house price growth has sat within the 2-3% range for the past 12 months, suggesting there has been little change in the balance between supply and demand in the housing market.
Looking ahead, subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low. On balance, experts expect house prices to rise by around 1% over the course of 2018.