UK house price inflation eased unexpectedly in September, with a stronger slowdown expected in the coming months as high inflation squeezed consumer budgets, survey results from the Nationwide Building Society showed on Friday.
The house price index climbed 9.5 percent year-over-year in September, slower than the 10.5 percent rise in August.
Further, house price inflation slowed to a single digit figure for the first time since August last year. Nonetheless, the pace of growth remained robust.
On a monthly basis, house prices showed no variations in September, following a 0.7 percent rise in the previous month.
The average price for a UK home stood at GBP 272,259 in September compared to GBP 273,751 in the previous month.
“There have been further signs of a slowdown in the market over the past month, with the number of mortgages approved for house purchase remaining below pre-pandemic levels and surveyors reporting a decline in new buyer enquiries,” Robert Gardner, Nationwide’s Chief Economist, said.
“Nevertheless, the slowdown to date has been modest and, combined with a shortage of stock on the market, this has meant that price growth has remained firm,” said Gardner.
Market headwinds are growing stronger, suggesting further slowdowns ahead. Recent data indicated that inflation is exerting significant pressure on household budgets, and consumer confidence is at an all-time high.
During the third quarter, house price growth slowed in 10 of the UK’s 13 regions, the Nationwide said.
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