House price growth unchanged in September

House price growth unchanged in September

House price growth was unchanged in September but regional disparities continued, according to Nationwide figures.

In its latest house price index released today (2 October), the building society found annual house price growth was unchanged at 2 per cent in September.

Annual house price growth has fluctuated between 2 and 3 per cent for the past year.

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Meanwhile on a monthly basis house prices grew by 0.3 per cent in September, seeing the average UK house price rise slightly from £214,745 in August to £214,922 last month.

This compared to a fall of 0.5 per cent in the previous month.

Robert Gardner, chief economist at Nationwide, said he expected house prices to continue to rise by around 1 per cent over the course of 2018.

He said: "Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates.

"Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low."

Regional disparity in growth continued in September, with the north being the weakest-performing region with a price fall of 1.7 per cent year-on-year.

Yorkshire and Humberside performed the strongest in both England and UK, with prices up 5.8 per cent, and the East Midlands following with a relatively strong growth of 4.8 per cent.

Despite prices in London falling for the fifth quarter in a row, Mr Gardner described the drop as "modest" at -0.7 per cent.

Mr Gardner said: "Indeed, prices in the capital are only around 3 per cent below the all time high recorded in Q1 2017 and are still more than 50 per cent above their 2007 levels."

Lucy Pendleton, founder director at James Pendleton, said: "London looks like the sick man of the UK on paper over five quarters but the capital is in more a holding pattern than stuck in a rut.

"Prices in the capital have corrected but sheer weight of numbers means price tags don’t have to sink far to pick up renewed interest."

Ms Pendleton added: "The market is playing pinball nationally between annual growth of 2 per cent and 3 per cent. It has the distinct look of a herd waiting to see what’s going to happen next before it decides which way to go.

"People are waiting to see whether the Brexit gods deliver us a very bad Brexit or just a tumultuous one."