On a monthly basis, house prices increased by 0.3% in September from -0.5% in August 2018, with an average house price standing at £214,922 compared to £214,745 last month, according to the Nationwide House Price Index.
Robert Gardner, Nationwide’s chief economist, said 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 this year, though borrowing costs are likely to remain low.
He added: “Overall, we continue to expect house prices to rise by around 1% over the course of 2018. Overall, UK house price growth remained broadly stable, but regional house price developments were more varied.
“For the fifth quarter in a row London prices fell in annual terms, though the decline remained modest at just -0.7%. Indeed, prices in the capital are only about 3% below the high recorded in Q1 2017 and are still more than 50% above their 2007 levels.
Article published by Mortgage Solutions - 2 October 2018