The UK’s annual house price growth remained subdued at 0.4 per cent and there was a modest 0.2 per cent rise month-on-month in October, according to the latest Nationwide house price figures.
Robert Granger, Nationwide’s Chief Economist, said: “annual house price growth remained below one per cent for the 11th month in a row in October, at 0.4 per cent. Average prices rose by around £800 over the last 12 months, a significant slowing compared with recent years – fot example, in the same period to October 2016, prices increased by £9,100.
“Indicators of UK economic activity have been fairly volatile in recent quarters, but the underlying pace of growthappears to have slowed as a result of weaker global growth and an intensifying of Brexit uncertainty. To date, the slowdown has been centred on business investment, while households spending has been more resilient.”
He added “The underlying pace of housing market activity has remained broadly stable, with the number of mortgages approved for house purchases continuing within the fairy narrow range prevailing over the past two years.
“Solid labour market conditions and low borrowing costs appear to be offsetting the drag from the uncertain economic outlook. The question is whether this pattern will continue.
“There were tentative signs of softening in the jobs market in the three months to August, as employment fell, unemployment rose, and wage growth slowed a little. If this trend continues it would be significant concern, as the labour market has been the key factor in the resilience of the household sector.
“However, monthly data is often volatile and the unemployment rate remains close to 40 year lows and real earnings growth is close to levels prevailing before the financial crisis.”
Adapted from Yorkshire Post