UK property prices starting to flatline

The signs have been there for a while, so Nationwide's numbers for September came as no surprise. The lender also took a look at property prices around the regions.

This was the first month since July 2021 that house prices didn't rise month-on-month, with the average property price remaining unchanged. There was a slight fall in the annual increase to 9.5% from 10.0% in August.

Nationwide's figures for September

.

September 2022

August 2022

Monthly change

0.0%

0.8%

Annual change

+9.5%

+10.0%

Average price

£272,259

£273,751

Average price not seasonally adjusted

Robert Gardner, chief economist, Nationwide

"There have been signs of a further 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. 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.

"By lowering transaction costs, the reduction in stamp duty may provide some support to house prices, as will the strength of the labour market, assuming it persists, with the unemployment rate at its lowest level since the early 1970s.

"However, headwinds are growing stronger suggesting the market will slow further in the months ahead."

Around the regions

Nationwide's quarterly regional breakdown showed a softening of house price growth in 10 of the 13 regions. The biggest movers -

.

Average Price

Annual % Change

South West

£321,725

+12.5%

East Midlands

£241,699

+12.3%

Wales

£213.684

+12.1%

West Midlands

£247,120

+12.0%

North West

£212,998

+11.3%

London remained the weakest performing region, though it did see a modest pickup in annual price growth to 6.7%, up from 6.0% last quarter.

Nationwide House Price Index September 2022