Property prices fall in London year on year for first time in eight years
House prices have fallen in London on an annual basis for the first time in eight years but overall house price growth in the rest of the UK was stable at 2%, the latest index shows.
Nationally month on month pries increased by 0.2% in September, taking the average cost of a home to £210,116, the figures from lender the Nationwide reveal.
Overall activity in the housing market is subdued compared to historic trends and it is low mortgage rates and healthy rates of employment growth that are providing some support for demand, but this is being partly offset by pressure on household incomes, which appear to be weighing on confidence, according to Robert Gardner, Nationwide’s chief economist.
‘The lack of homes on the market is providing ongoing support to prices. House price growth rates across the UK have converged in recent quarters. Annual growth rates in the south of England have moderated towards those prevailing in the rest of the country,’ he said.
‘London has seen a particularly marked slowdown, with prices falling in annual terms for the first time in eight years, albeit by a modest 0.6%. Consequently, London was the weakest performing region for the first time since 2005,’ he added.