Annual house price growth grinds almost to a halt

Annual house price growth nearly "ground to a halt" in September, remaining below 1% for the 10th month in a row, according to new figures

Property values increased by just 0.2% annually, taking the average UK house price in September to £215,352, according to new figures by the Nationwide Building Society.

In the North East, the average house price is now £127,570 – two per cent higher than at the start of the year.

House prices fell by 0.2% month on month, following no change in August.

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 10th 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.”

He added: "However, the slowdown has centred on business investment household spending has been more resilient, supported by steady gains in employment and real earnings."

In England, house prices in northern regions and the Midlands combined have increased by 1.4% annually, while those across southern areas fell by 0.8%.

Mr Gardner added: "These trends are not entirely unexpected, however, as affordability is still more stretched in the South, with prices further above their pre-financial crisis levels."