Annual house price growth remained below 1% for the eleventh month in a row in October, at 0.4%, according to the latest data from the Nationwide House Price Index.

The new figures show that average prices have risen by approximately £800 over the last 12 months, a significant slowing compared with recent years. As an example, in the same period to October 2016, prices increased by £9,100.

Nationwide chief economist, Robert Gardner, commented: “Indicators of UK economic activity have been fairly volatile in recent quarters, but the underlying pace of growth appears to have slowed as a result of weaker global growth, and an intensifying of Brexit uncertainty. To date, the slowdown has centred on business investment, while household spending has been more resilient.

“The underlying pace of housing market activity has remained broadly stable, with the number of mortgages approved for house purchase continuing within the fairly narrow range prevailing over the past two years.”

Nationwide’s latest data revealed the average house price in the UK to be £215,368, although Gardner suggested that low unemployment rates could be a significant concern, with the labour market being the key factor underpinning the resilience of the household sector in recent years.

“If Brexit uncertainty lifts in the months ahead, hiring is likely to recover, although there may be some upward pressure on mortgage rates as investors once again contemplate the potential for UK rate increases in the years ahead,” Gardner continued.

“However, in the near-term such increases are likely to be capped by trends in global financial markets. Weak global economic prospects continue to exert downward pressure on long-term interest rates around the world – including the UK.

“Moreover, mortgage rates remain close to all-time lows – more than 95% of borrowers have opted for fixed-rate deals in recent quarters, around half of which have opted to fix for five years.”

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