01 Oct 2014

September slowdown: UK house prices dip by 0.2%

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UK house prices fell by 0.2% in September following sixteen consecutive monthly price rises, as annual house price growth slowed to 9.4%.

Monthly Index:

Sept 374.9
Aug 375.5

Monthly Change:

Sept -0.2%
Aug 0.8%

Annual Change:

Sept 9.4%
Aug 11.0%

Average Price (not seasonally adjusted)

Sept £188,374
Aug £189,306

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.”

David Newnes, director of Reeds Rains and Your Move estate agents, comments:

“Higher LTV lending and the Help to Buy scheme are vital tools to keep first-time buyers active in areas of the country where the recovery is vulnerable, to drive momentum forward.

In London, which sped off of the blocks at the start of the year, the market is composing itself after an energetic few months and we’ve seen house price inflation start to ease back. A new ‘Mansion Tax’ has been talked about in recent times. But in areas of the country like London, which has seen such vigorous house price growth, many of those who would be caught in any ‘Mansion Tax’ net would be ordinary working people owning a family home.”

Courtesy  http://www.propertyreporter.co.uk/

– See more at: http://charteredsurveyorcheshire.co.uk/inews/1479-september-slowdown-uk-house-prices-dip-by-0-2.html#sthash.MQRVTl5c.dpuf

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