By Jonathan Davies
The growth of house prices slowed to 9.4% in September, down from 11% in August, according to Nationwide Building Society.
The figures are based on a comparison with the same months last year. Nationwide said the slow down came after a 0.2% monthly fall between August and September. Prices had grown on a monthly basis for 16 consecutive months.
Once again, prices in London and the South East of England grew much faster than anywhere else in the UK. House prices in London are now 31% above the pre-crisis peak in 2007, but average prices outside of the capital are just 1% above the 2007 peak.
The average house price in London is now £401,072, Nationwide said.
Robert Gardner, the Nationwide's chief economist, said: "While September saw a slowing in house price growth, the picture on a quarterly basis (July, August and September combined) was still relatively strong, with all thirteen UK regions recording annual price gains."
Mr Garnder said prices are still likely to rise in the final months of the year, but probably at a slower pace.
He said: "The outlook remains uncertain. There have been tentative signs from surveyors and estate agents that buyer demand may be starting to moderate, but the low level of interest rates and strong labour market suggest that underlying demand is likely to remain robust."
The figures come in stark contrast to those released by the Land Registry last week. It said that prices are rising at the fastest pace since 2007, albeit at a slower pace than suggested by Nationwide.
The issue with housing market figures is that various organisations release information on their own data. So there is often huge variations is house price figures.
Andy Hatoum, co-founder of the property search engine Placebuzz.com, said:
“...Such a modest month-on-month dip gives us few clues as to whether the runaway growth has exhausted itself or just taken a break.
“It doesn’t help that the Nationwide numbers fly in the face of the latest Land Registry data — which in August posted its fastest rate of growth in nearly seven years.
“In some areas house prices are topping out, and this is clearly injecting a degree of volatility to the national figures."
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