Annual house price inflation may have peaked at 10% – Nationwide
Prices actually rose 0.6 per cent between August and September and prices rose a further 9.6 per cent in the last year. However, flat earnings growth and the prospect of a rate rise have tempered housing demand over the summer.
Average house prices rose to £187,188 in August.
Nationwide said: “Annual house price inflation may have peaked at around 10%. A moderation in growth looks likely during the remainder of 2014 and into next year as supply and demand become increasingly better balanced.”
Home sales fell below 100,000 in August for the first time since November 2013, to 99,930.
Hudsons Property estate agent, Jonathan Hudson, said: “The new figures are not a surprise. House prices in London haven’t risen in the same period so whilst this shows growth nationally, one shouldn’t forget that the figures mainly represent property transactions which were agreed some time before, if the average transaction is down to 8-10 weeks. Therefore, it will be interesting to see how the London slow down affects the UK market over the next quarter.”
Hudson said the number of people, fighting over small numbers of properties forcing quick and sometimes rash decisions have fallen.
“People are still buying, but with a more measured approach, taking a little more time to see a few similar properties before committing,” he said.
Andy Hatoum, co-founder of property search engine Placebuzz.com, said: “Such lukewarm results show the traditional autumnal surge in demand for properties has died a death.
“The MMR has clearly taken the wind out of the sails in the mortgage market, with a sharp decline in mortgage availability this summer.
“Even if mortgage activity does kickstart, it’s unlikely to reach the heights it has done over the past year.”