UK house price growth slowed to its lowest rate since December last month, with prices rising by 0.8% in September compared to a year earlier. This figure is half the 1.6% increase recorded in August, according to Nationwide data.
Prices also saw a monthly fall of 0.2% in September, reversing the 0.2% increase from August. The average UK home was valued at £274,251.
Robert Gardner, Nationwide’s chief economist, noted that market activity and house prices have remained subdued due to the uncertain economic backdrop. Higher energy prices have contributed to inflation concerns and expectations of potential interest rate rises, which could further impact mortgage costs.
Separate figures from HMRC show that home sales also decreased in August, down one per cent from July and two per cent from a year earlier. The property industry is now looking to the Autumn Budget on 28 October for further clarity, where new measures affecting the housing market are anticipated.
A divide in performance was observed across Britain, with northern regions continuing to outperform the South. Northern Ireland saw the strongest annual growth in the third quarter at 5.9%, while prices in Southern England fell by 0.1% overall. London recorded a modest annual rise of 0.4%.