House prices in UK increased by 0.3% in September

increase-rentHouse prices in the UK increased by 0.3% in September but annual property price growth has slowed to 5.3% from 5.6% in August. According to Nationwide BS data, the monthly rise took the price of an average home to over £206,000. On comparing between the quarters, the prices have increased by 1.3% in 2016.

Robert Gardner, Nationwide’s chief economist, says: “The price growth remains within the narrow range of 3% to 6% that has prevailed since early 2015. The relative stability in the rate of house price growth suggests that the softening in housing demand evident in recent months has been broadly matched on the supply side of the market. The number of new homes built in England has picked up, but is still not sufficient to keep up with the expected demand. With interest rates expected to remain low and schemes, such as Help to Buy, helping to provide those with smaller deposits access to finance, the builders should have confidence that there will be sufficient demand from buyers if more homes are built. There is a fairly close linear relationship between increasing affordability pressures and increases in housing stock. This suggests that supply has been less responsive to rising affordability pressures than expected in the capital and the surrounding area.”

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