UK house prices rose for the first time in four months in August, according to Nationwide's latest index, as the market remains in a "holding pattern" ahead of a Bank of England decision on interest rates. The uptick offers a tentative sign of stabilisation after three consecutive months of falling prices, though analysts caution that continued uncertainty over borrowing costs and rising energy bills could keep buyer confidence subdued in the near term.

The average UK home rose 0.2% month on month to £275,465, beating forecasts of a 0.1% increase, though the figure remains over £3,000 below April's peak of £278,880. Annually, prices were up 1.6%, ahead of July's 1.4% but below the 2% economists had expected. The Bank of England's monetary policy committee votes on 17 September on whether to raise the base rate from its current 3.75%, with markets pricing in a hold this month but a 0.25% rise by December; Nationwide's chief economist noted that a fresh rise in the energy price cap, pushing bills to a three-year high, has yet to dent buying and selling activity.