UK house prices rose by 0.1% in July, but the market remained subdued as buyers weighed uncertain interest-rate prospects and wider economic risks linked to the US-Iran conflict. The figures suggest that the usual summer peak in housebuying activity has been weakened by concerns over inflation, energy prices and borrowing costs.

Nationwide said the average home price reached £277,542, only £58 higher than in June and still below May’s level above £278,000. Annual growth slowed to 1.8% from 2.2% in June, while the Bank of England held rates at 3.75% and warned that an escalation of the conflict could lift inflation above 4% next year; Taylor Wimpey also reported weaker buyer demand and expects completions at the lower end of its forecast range.