The London housing market was the weakest performing region in the UK for first time since 2005, with house prices down 0.6% year-on-year, while UK annual house price growth was stable at 2.0% in the year to September, according to the Q3 2017 Nationwide House Price Index.
Prices increased nationally to £210,116, however, this is down from £210,495 (-0.1%) compared to a month earlier, in August 2017.
Commenting on the figures, Robert Gardner, Nationwide’s chief economist, said: “Housing market activity, as measured by the number of housing transactions and mortgage approvals, has strengthened a little in recent months, though remains relatively subdued by historic standards.
“Low mortgage rates and healthy rates of employment growth are providing some support for demand, but this is being partly offset by pressure on household incomes, which appear to be weighing on confidence. The lack of homes on the market is providing ongoing support to prices.