UK house prices unexpectedly rebound in August, but expectations of interest rate hikes and higher taxes continue to weigh on the market

```html(1) Data from the Nationwide Building Society shows that in August, the average UK house price rose by 0.2% month-on-month to £275,465, reversing a revised 0.1% decline from the previous month and slightly beating economists’ forecast of a 0.1% increase. This suggests that housing demand remains resilient despite the impact of the US-Iran conflict. (2) Supporting factors include residents’ ample savings buffers and Prime Minister Burnham’s cost-of-living measures, which have bolstered market sentiment. (3) However, several headwinds persist: energy costs remain high, with price declines recorded in two of the past four months; the Iran energy shock has dampened interest rate cut expectations, and traders now anticipate a 25 basis point rate hike before year-end; meanwhile, new Chancellor Healy’s first budget may introduce tax increases, potentially further dampening the willingness of prospective home buyers.```