"Accelerating growth is being held back by falling property value in London, dragging down the rest of the country. "
However the Index notes that a slowdown in the south and east of England is continuing to drag on national house price growth.
Growth in England remains weaker than the rest of the UK, with the lowest annual growth in London where prices fell by 0.3% over the year.
The West Midlands showed the highest annual growth, with prices increasing by 6.1% in the year to September 2018, followed by the East Midlands at 6.0%.
House prices in Wales and Scotland both increased by 5.8% over the last 12 months, while Northern Ireland saw growth of 4.8%.
John Goodall, CEO and co-founder of Landbay, said: “Accelerating growth is being held back by falling property value in London, dragging down the rest of the country. Following years of steep price rises, affordability in the capital has become stretched. Combine this with the punitive changes to stamp duty and Brexit uncertainty, and it’s no wonder that would-be buyers and sellers are staying put.”
Jeff Knight, marketing director for Foundation Home Loans, commented: “Never-ending political uncertainty has clearly dragged on buyer confidence, with the property market at its weakest for six years. A limbo state is never a good sign but doesn’t mean everything comes to a complete stand still – regionally we are still seeing significant investment interest which confirms it’s not all doom and gloom."
Mark Readings, founder and managing director of House Network, added: "The market slowdown is mainly driven by the lack of stock coming onto the market, with London and South and East of England being at the forefront. We have seen many sellers remain on the fence due to the lack of uncertainty of the Brexit outcome, this has a knock on effect and leaves risk-averse buyers willing to wait until these political uncertainties are resolved in the upcoming months."
"Despite slow house price growth in England, the market is still extremely attractive and as this uncertainty fades, the market fundamentals of low-interest rates, strong employment figures and the recent extension of the government help-to-buy scheme, will all drive the market and support a positive upturn in 2019."
