UK Nationwide house price index defies forecasts for a fall, posts 0.6 pct monthly gain in Aug

According to data released by Nationwide building society UK house prices edged up in August despite the Brexit vote. The average price of a home rose 0.6 percent m/m to £206,145 in August, according to the Nationwide house price index. The rise defied consensus for a 0.2 percent m/m fall and compared with a 0.5 percent monthly gain in June.

UK house prices rose 5.6 percent in August compared to the same month a year earlier, a pick-up from 5.2 percent growth the previous month and a stronger rate than expected by economists, who had pencilled in a 4.8 percent rise.

House prices have held up pretty well since the Brexit vote on June 23 and have so far defied some gloomy predictions before the referendum of a crash. Today's house price data follows Bank of England's mortgage approvals yesterday which fell to an 18-month low in July and housing experts suggest prices are being maintained by a lack of available supply coming onto the market.

"The pick up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months, said Nationwide’s chief economist, Robert Gardner.