Nationwide: Annual UK house price growth edges up
Annual UK house price growth rose in September for the first time since May, figures by Nationwide have shown – although the figure was a far cry from the same period this time last year.
Prices rose 3.8 per cent in the year to September – up from August's 3.2 per cent, but considerably lower than last September's figure of 9.4 per cent (not to mention the peak of 11.8 per cent, in June last year).
Meanwhile, month-on-month, prices rose 0.5 per cent. The average house price hit £195,585 – tantalisingly close to the £200,000 mark.
During the third quarter, prices rose 3.7 per cent, with the capital taking the crown for the fastest growth, at 7.3 per cent, while the average price rose to £443,399.
Howard Archer, chief European and UK economist at IHS, suggested that the fear of a rate hike and tighter lending conditions may dampen activity in the property market over the coming months.
"The upside for housing market activity and prices is expected to be constrained by more stretched house prices to earnings ratios, tighter checking of prospective mortgage borrowers by lenders and the likelihood that interest rates will start rising gradually before too long.
"Indeed, mortgage lenders have already withdrawn some of their lowest rate mortgages. At least though, the Bank of England is stressing that interest rates will only rise gradually and to a limited extent."