Annual house price growth continues to soften

October House Price Index

Once again, house price growth continued to slow in the month of October. The annual pace of house price growth declined to 9% from 9.4% in September, despite house prices increasing by 0.5% month on month.

Robert Gardner, Nationwide’s Chief Economist, commented, “A variety of indicators suggest that the market has lost momentum. The number of mortgages approved for house purchase in September was almost 20% below the level prevailing at the start of the year. Some forward looking indicators, such as new buyer enquiries, suggest that activity may soften further in the near term, especially in London. However, broader economic indicators remain positive. The labour market has continued to improve, with the unemployment rate falling to 6% in the three months to August and mortgage rates have fallen back towards all-time lows. Indicators of consumer confidence have also remained close to recent highs.”

Headlines Oct 2014 Sep 2014
Monthly Index* 377.4 375.4
Monthly Change* 0.5% -0.1%
Annual Change 9.0% 9.4%
Average Price (not seasonally adjusted) £189,333 £188,374

*Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

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