British house prices rose for the first time in three months in July, mortgage lender Nationwide Building Society said on Friday, but the small increase was not enough to stop a slowdown in the annual rate amid an uncertain economic outlook.
House prices in July were 1.8% higher than a year earlier, slowing from a 2.2% increase in June, after prices rose 0.1% in July alone, Nationwide said.
The price moves were broadly in line with those expected in a Reuters poll of economists.
"Geopolitical tensions remain high, with the conflict between Iran and the U.S. again exerting upward pressure on energy prices and market interest rates in recent weeks," Nationwide Chief Economist Robert Gardner said.
But he added that market bets for at least one quarter-point rate increase this year reflected the risk that the U.S.-Iran war could create bigger inflation pressures than the BoE anticipated.
