House prices grew at their slowest annual rate since May 2013 in October, according to Nationwide’s latest House Price Index.

House price growth slumped to 1.6% last month, compared to 2% in September 2018. Meanwhile, the average house price actually fell month-on-month, with the average price for a property being £214,534 in October, whereas in September the average house price was £214,922.

However, when taking seasonal effects into account, prices remained flat month-on-month.

Nationwide chief economist Robert Gardner announced that he expects house prices to grow by just 1% over the course of 2018, with the “squeeze on household budgets and the uncertain economic outlook” dampening demand, despite borrowing costs remaining low.

“Looking further ahead, much will depend on how broader economic conditions evolve. If the uncertainty lifts in the months ahead, there is scope for activity to pick-up throughout next year,” Gardner said.

“The squeeze on household incomes is already moderating and policymakers have signalled that interest rates are only expected to raise at a modest pace and to a limited extent in the years ahead.”

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