Annual house price growth slowed from 5.6% to 5.3% between August and September, according to Nationwide’s latest House Price Index. It now suggests the average value of a UK property is £206,015.
The report stated that the demand for housing has softened over recent months, but supply has also been fairly muted, due in part to a lower construction rate. Over the last year 139,000 new homes were completed, a figure which falls significantly short of the projected figure of 225,000.
Nationwide’s chief economist Robert Gardner warns the numbers are not enough to sustain expected population increases. With low interest rates however, and initiatives to help borrowers with small deposits, he says that ‘housebuilders should have confidence that there will be sufficient demand from buyers if more homes are built’.
The report claims that major builders are reporting land banks large enough to support construction at current rates for the next 5 years, although current economic uncertainty could affect activity in the near future.
On a more regional level, it appears that more properties are being built in areas where prices are expensive and affordability can be an issue – such as South West and the Outer South East.
To get an idea of how much your house is worth, have a look at our house price calculator
House price growth slows