Annual house price growth slowed to 9.4%, and all regions saw annual price gains in Q3, but significant regional variation remains.
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said:
“UK house prices declined by 0.2% in September, following sixteen consecutive monthly price rises. As a result, the annual pace of house price growth moderated to 9.4% from 11% in August.
“While September saw a slowing in house price growth, the picture on a quarterly basis (July, August and September combined) was still relatively strong, with all thirteen UK regions recording annual price gains. There remains significant regional variation however, with the South of England still seeing the strongest rates of growth (see chart opposite).
“Annual house price growth in London slowed somewhat, from 25.8% in Q2 to 21% in Q3. Nevertheless, at £401,072, average prices in the capital reached a record high, 31% above their 2007 peak. In the UK as whole, prices are around 2% above their pre-crisis peak (excluding London they are less than 1% above their 2007 peak).
“Price growth may soften further in the final quarter of the year, given the high base for comparison from Q4 2013. However, the outlook remains uncertain. There have been tentative signs from surveyors and estate agents that buyer demand may be starting to moderate, but the low level of interest rates and strong labour market suggest that underlying demand is likely to remain robust.”
