Prices of houses in the UK fell in August the most in six years after Bank of England raised interest rates, Bloomberg reports with the reference to Nationwide Building Society.

Prices fell by 0,5% in August. Price growth slowed down to 2% from 2,5% in July compared with last year.

UK’s housing market demonstrates general downturn during some time after three-year property boom made purchase of house unaffordable for many Britons. Potential buyers are also afraid to taking loans amid slow wage growth and rising interest rates.

Experts assume that subdued economic activity and pressure on households’ budgets will limit housing prices growth until the end of this year. As a result the expectation in regards to price growth are 1% in 2018.

Bank of England raised interest rate by quarter percent to 0,75% on August 2 and is planning to continue to limit price growth.