UK house price growth remained subdued in September - Nationwide

According to the report from Nationwide Building Society, annual house price growth in UK dipped to 0.2% in September compared to +0.6% in August. Economists had expected a 0.5% increase. On a monthly basis, home prices fell 0.2% after stabilizing in August. Economists had expected a 0.1% increase.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “UK annual house price growth almost ground to a halt in September, at just 0.2%. This marks the tenth month in a row in which annual price growth has been below 1%. Indicators of UK economic activity have been fairly volatile in recent quarters, but the underlying pace of growth appears to have slowed as a result of weaker global growth and an intensification of Brexit uncertainty. However, the slowdown has centred on business investment household spending has been more resilient, supported by steady gains in employment and real earnings. The underlying pace of housing market activity has remained broadly stable, with the number of mortgages approved for house purchase continuing within the fairly narrow range prevailing over the past two years. Healthy labour market conditions and low borrowing costs appear to be offsetting the drag from the uncertain economic outlook.