Annual UK house price growth remained unchanged in July, with prices rising by 2.3% compared with the same month a year earlier, according to Nationwide Building Society's latest House Price Index.

House prices increased by 0.3% month-on-month after taking account of seasonal effects, leaving the average UK property valued at £274,708.

Nationwide said housing market activity has remained resilient in recent months despite wider economic uncertainty. It noted that underlying conditions for potential homebuyers have continued to improve, with unemployment remaining low, earnings continuing to outpace house price growth and borrowing costs moderating.

Robert Gardner, Nationwide's Chief Economist, said: "Housing market activity has held up well in recent months, despite wider economic uncertainties in the global economy. Indeed, 64,200 mortgages for house purchase were approved in June, the highest since February 2024 and around 5% above the monthly average prevailing in 2019, before the pandemic struck.

"After deteriorating markedly in the wake of the pandemic, housing affordability has been steadily improving, thanks to a period of strong income growth alongside more subdued house price growth and a modest fallback in mortgage rates."

Nationwide said these factors have helped improve affordability, although house prices remain high relative to average earnings by historic standards.