This morning Nationwide released their latest House Price index which showed that in September at least, house prices had fallen by 0.2%, with annual house price growth slowing to 9.4%.

Over the quarter however, all regions saw more gains but it was the pace of these gains which shows the market is easing. In London annual price growth slowed from 25.8% in Q2 to 21% in Q3.

Whilst we have still seen some extraordinary house price growth across the quarter it is pleasing to see that the pace of change has slowed, particularly in London.

This change of pace should hold steady for the foreseeable future as the move from a sellers to a buyers market is evident in many London areas.

Although mortgages continue to be available at exceptionally low rates, issues around affordability and the inevitability of future interest rate rises have made borrowers more cautious about paying over the odds for property.

Meanwhile at the top end of the market, the threat of policies such as the Mansion Tax have slowed activity further.

All of this points to a distinct sea change in the housing market which should make for a more sustainable market going forward.

The full release can be read here.

 

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