UK house price growth accelerates despite Brexit

British house price rises picked up speed in August and households recovered some confidence which had plunged after June’s Brexit vote, according to surveys that added to signs of calm among consumers after the unexpected referendum result.

However, the increase in house prices was largely driven by a shortage of homes on the market and the outlook depended on the longer-term impact on the UK economy of the vote to leave the EU, mortgage lender Nationwide said.

Prices rose 5.6% compared with the same month last year, faster than July’s 5.2% annualised growth. Economists had expected UK house prices to rise 4.8%. In monthly terms, house prices rose by 0.6%, from a rise of 0.5% in July.