The latest house price index from Nationwide has indicated a 0.2% fall in UK house prices in September.
Noel Meredith, Executive Director of United Trust Bank comments:
“In my view the slight drop in the average house price figure for the UK is not surprising. The strong growth in the UK average figure over the past year has been largely driven by exceedingly strong price growth in London and the South East with the growth from these regions having a disproportionately large effect on the UK average.
“The London market softened slightly over the summer with prices dropping back a little, so despite all thirteen regions covered by the index recording annual house price growth the statistical effect of a relatively small change in London has brought down the UK average. When you include London prices in a national house price index you have to take the rough with the smooth and this slight drop is certainly not something which should set alarm bells ringing.”