Property prices in the UK are falling on a monthly basis, with values down to an average of £214,745, according to the latest Nationwide House Price Index.
Annual price growth in the 12 months to August 2018 fell to 2% from 2.5% in July, while month on a month values were down by 0.5%, the biggest monthly fall since July 2012, the data shows.
However, Robert Gardner, Nationwide’s chief economist, pointed out that annual house price growth remains within the fairly narrow range of 2% to 3% which has prevailed over the past 12 months, suggesting little change in the balance between demand and supply in the market.
“Looking further ahead much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates. Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on house price growth and market activity this year,” he explained, adding that “borrowing costs are likely to remain low. Overall, we continue to expect house prices to rise by around 1% over the course of 2018.”