Annual house price growth remained subdued in March

New figures show

UK annual house price growth remanined steady at 2.1 per cent in March, figures from Nationwide show.

London was again found to be the weakest performing region, with house prices down oner per cent year-on-year.

 

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “UK house price growth remained broadly stable in March at 2.1 per cent, little changed from the 2.2 per cent recorded the previous month. House prices fell by 0.2 per cent over the month, after taking account of seasonal factors.

“On the surface, the relatively subdued pace of house price growth appears at odds with recent healthy rates of employment growth, a modest pick-up in wage growth and historically low borrowing costs. However, consumer confidence has remained subdued, due to the ongoing squeeze on household finances as wage growth continues to lag behind increases in the cost of living.

“Looking ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates. Subdued economic activity and the ongoing squeeze on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year.

“Buthistorically low unemployment and mortgage interest rates together with the lack of properties on the market is likely to provide some support for house prices.  Overall, we expect house prices to be broadly flat, with a marginal gain of around one per cent over the course of 2018.”