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Yearly house price growth remained steady year-on-year in September, according to the latest Nationwide House Price Index.
Annual house price growth has stabilised at 2 per cent, according to the Index. On a monthly basis, prices were by by 3 per cent on a seasonally adjusted basis. This takes the average house price in the UK to £214,922. This is in comparison to £214,745 which was recorded last month.
However, a growing disparity was recorded across regions in the UK. London recorded an annual drop for the fifth quarter in a row, falling by 0.7 per cent. However, it was noted in the Index that London property remains more than 50 per cent above the prices recorded in 2007.
Within England, Yorkshire and Humberside lead the growth and recorded an increase of 5.8 per cent on a yearly basis. The East Midlands also saw sizeable growth of 4.8 per cent over the same time period. In the North, prices were down 1.7 per cent in the 12 months to September.
On a countrywide basis, Northern Ireland prices rose 4.3 per cent over the year, while Wales, Scotland and England all fell behind with slight increases of 3.3 per cent, 2.1 per cent, and 1.4 per cent, respectively.
Nationwide chief economist Robert Gardner explained: ‘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. Overall, we continue to expect house prices to rise by around 1 per cent over the course of 2018.’
Yopa chief property analyst Mike Scott also commented: ‘As we move into next year, prices are likely to continue to rise at this rate, roughly in line with inflation, with supply and demand in balance. Since housing supply only changes very slowly, it will take an increase or decrease in demand to realign the market and get prices rising faster or slowing down and falling.’
Finally, Mortgage Advice Bureau head of lending Brian Murphy added: ‘This morning’s figures should provide a degree of reassurance, as they appear to point towards the housing market continuing to function at a healthy level so far this year, despite the ongoing political and economic headwinds.’