Growth in house prices stagnates

HOUSE price growth slowed sharply as 2018 drew to a close – recording its weakest annual growth in nearly six years, according to an index.

Annual house price growth slowed from 1.9 per cent in November to 0.5 per cent in December, Nationwide Building Society said.

The 0.5 per cent increase in December was the weakest since February 2013.

House prices were down by 0.7 per cent month-on-month in December.

Across the UK, the average house price in December was £212,281.

London and some commuter belt areas surrounding the capital have seen house prices dip year-on-year.

In London, the average house price in the fourth quarter of 2018 was £466,988 – 0.8 per cent lower than the same period in 2017.

The weakest performer regionally for annual house price growth was the Outer Metropolitan area, which includes Reading, Slough, Windsor and Maidenhead and Wokingham.

House prices in the Outer Metropolitan area fell by 1.4 per cent annually in the fourth quarter of 2018, reaching £356,531 on average.

Northern Ireland was the strongest performer, with house prices in the fourth quarter of 2018 up by 5.8 per cent annually to reach £139,599 on average, followed by the East Midlands and Wales, where house prices lifted by four per cent annually.

In Scotland, house prices in the fourth quarter of 2018 were 0.9 per cent higher annually, at £147,856 on average.

Robert Gardner, Nationwide’s chief economist, said: “UK house price growth slowed noticeably as 2018 drew to a close, with prices just 0.5 per cent higher than December 2017.

“This marks a noticeable slowdown from previous months.”

He said there had been indications a softening in the housing market was likely, including weakened consumer confidence and reports of falls in inquiries from new buyers.

Mr Gardner continued: “It is likely that the recent slowdown is attributable to the impact of the uncertain economic outlook on buyer sentiment, given that it has occurred against a backdrop of solid employment growth, stronger wage growth and continued low borrowing costs.

“Near-term prospects will be heavily dependent on how quickly this uncertainty lifts, but ultimately the outlook for the housing market and house prices will be determined by the performance of the wider economy – especially the labour market.

“The economic outlook is unusually uncertain.

“However, if the economy contin-

A property in picturesque Castle Combe was the West’s most expensive sale