Residential property prices in the UK rose further in September, albeit at a slower rate, new figures out today show.
According to the data from Nationwide, home prices increased by 5.3% in September compared with the corresponding month last year, which was slower than the increase of 5.6% recorded in August, but still well within the range of 3% to 6% that has prevailed since early 2015.
The building society said prices rose by 0.3% compared to last month, but down from a month-on-month rise of 0.6% in August, taking the average cost of a residential property to £206,015.
Nationwide economist Robert Gardner said the modest slowing of growth in house prices was largely due to a shortage of homes for sale which cushioned the impact of weaker demand.
“The relative stability in the rate of house price growth suggests that the softening in housing demand evident in recent months has been broadly matched on the supply side of the market,” said Robert Gardner, Nationwide's chief economist.
Rob Weaver, director of investments at property crowdfunding platform Property Partner, was quick to point out that while we may be seeing a slowdown in the market, house prices are still creeping upwards month-on-month.
He said: There’s been stability in residential property that’s reassuring particularly post-Brexit and proof of the underlying strength in this market compared to the panic seen in the commercial sector.”
“Stable house prices is really positive but the low levels of activity in the market is a continuing concern and an indication that it is still difficult to get mortgage finance despite the recent lowering of the base rate,” he added.