Home.co.uk
Home.co.uk

News: House price growth slows in September, says Nationwide

Wed, 01 Oct 14


The lender’s report confirms trends recorded by other major indices in recent months, as the UK housing market cools following months of unsustainable growth. House prices fell by 0.2 per cent in September 2014 to an average of £188,374, reports Nationwide, causing annual house price growth to slow to 9.4 per cent - down from 11 per cent in August 2014.

The figures mark end of 16 months of price rises in a row, explains Robert Gardner, Nationwide’s Chief Economist: "While September saw a slowing in house price growth, the picture on a quarterly basis (July, August and September
combined) was still relatively strong, with all thirteen UK regions recording annual price gains. There remains significant regional variation however, with the South of England still seeing the strongest rates of growth (see chart
opposite).

"Annual house price growth in London slowed somewhat, from 25.8% in Q2 to 21% in Q3. Nevertheless, at £401,072, average prices in the capital reached a record high, 31% above their 2007 peak. In the UK as whole, prices are around 2% above their pre-crisis peak (excluding London they are less than 1% above their 2007 peak).

"Price growth may soften further in the final quarter of the year, given the high base for comparison from Q4 2013. However, the outlook remains uncertain. There have been tentative signs from surveyors and estate agents that buyer demand may be starting to moderate, but the low level of interest rates and strong labour market suggest that underlying demand is likely to remain robust."


See also: Nationwide House Price Index

Back to: News Index