Annual house price growth has remained steady at 2.2% in the year to September, according to the latest Nationwide House Price Index.

This was up marginally from the 2.1% that Nationwide recorded over the 12 months to August.

Nationwide revealed that house prices increased by 0.5% on a monthly basis in September, after taking account of seasonal effects, to take the average price of a UK home to £271,995.

The building society suggested that the broad stability in the annual rate of house price growth over the past three months had mirror that of activity in the market.

“Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive,” commented Nationwide chief economist, Robert Gardner.

“Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong and borrowing costs are likely to moderate a little further if Bank Rate is lowered in the coming quarters as we, and most other analysts, expect.

“Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”

Foxtons CEO, Guy Gittins, added that the latest Nationwide figures show the market has remained “resilient”, despite the uncertainty surrounding the Autumn Budget.

“With Budget-related uncertainty now behind us and no changes to property taxes for the vast majority of the market, confidence is expected to rebuild as more households feel ready to resume their moving plans over the coming months,” added Gittins.

“As we head into the new year, the outlook is encouraging. Underlying demand remains strong, and this should help support activity as buyers and sellers re-engage.”

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