The Nationwide Building Society released its house prices data for the U.K. on Thursday. UK house prices were up 0.3% in August, missing expectations for a 0.4% rise, after a 0.4% increase in July.
On a yearly basis, house prices fell to 3.2% in August from 3.5% in July, beating expectations for a fall to 3.1%. It was the lowest increase since June 2013.
"However, with UK house building running well below the expected rate of household formation in recent years and with demand for homes rising, a significant increase in construction activity is required if affordability is not to become stretched in the years ahead," Nationwide's chief economist, Robert Gardner, said.