House prices across the UK increased by 0.3% in September compared to August, taking the average property price to £214,922 as oppose to £214,745 the previous month, according the Nationwide’s most recent House Price Index.
When looking at house price growth on an annual basis, the figures revealed steady growth at 2%.
However, across the UK, the North was the weakest performing region in the third quarter of 2018, with prices down 1.7% year-on-year. For the fifth quarter in a row, London house prices fell, despite the decline being modest at 0.7%.
Commenting on the findings, Nationwide chief economist Robert Gardner said: “Indeed, annual house price growth has been confined to a fairly narrow range of c2-3% over the past 12 months, suggesting little change in the balance between demand and supply in the market.
“Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates.”
However, Gardner added that “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 throughout the rest of the year, with borrowing costs “likely” to remain low.
Also commenting, Bluestone Mortgages director of sales and marketing Steve Seal stated: “It is sadly the case that continued house price growth is limiting aspiring homeowners’ ability to take the first step onto the property ladder. This continued – albeit at a slower rate than previous quarters is testing the affordability of many aspiring homeowners who find themselves barred from affordable mortgage rates with high-street lenders because of circumstances beyond their control, such as a divorce or an illness.
“As an industry, we need to ensure that aspiring homeowners are made aware of the options available to them and that they have access to appropriate resources. Specialist lenders can help, recognising when factors are outside of an individual’s control and offering the tailored solutions that these borrowers deserve to get onto the property ladder.”
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