UK house prices dropped unexpectedly last month, according to new figures from the Nationwide house price index. Annual price growth also slowed, with values up 2.1% compared with the same period last year, down from 2.4% in July. Nationwide’s chief economist said affordability remains a challenge, with house prices still high relative to household incomes. Forecasts suggest that growth in the housing market is likely to remain subdued through the rest of the year. While demand may be supported by lower interest rates, uncertainty over tax policy and stretched affordability are expected to weigh on activity.