As of August 2020 the average house price in the UK is £239,196, and the index stands at 125.45. Property prices have risen by 0.7% compared to the previous month, and risen by 2.5% compared to the previous year.

Homeowners think that house prices are falling

Many expected the bank base rate to be cut earlier this month due to apprehension over the Brexit decision, this did not happen to the surprise of most.

The MPC in their July meeting suggested that the committee is considering a broader package of measures, this has given rise to the expectation by financial markets that the Bank of England is ninety per cent certain to cut base rates in August.

The new Chancellor Phillip Hammond hinted at fiscal policy being "reset" at the Autumn statement last week.

Such uncertainty is having its affect on the housing market, we have already seen confidence in house builders hitting a year low with a substantial drop in their shares prices, this provides a good indication to sentiment overall.

Homeowners in the UK are now thinking that the value of their homes have dropped back in July, this is the first time they have thought this for over three years. In recent reports by Knight Frank and IHS Markit's House Price Sentiment Index (HPSI) for July it shows the index has slipped below 50 for the first time since early 2013, a score under 50 indicates that households think prices are falling.