Nationwide, a mortgage provider, reported on Friday that British house prices did not increase in monthly terms for the first time since July 2021, the latest indication of the market's slump brought on by the squeeze on cost of living and rising interest rates.
According to Nationwide, house prices were stable from August and were 9.5% higher than in September of last year. This is the first month since October of last year that the annual measure has not seen a double-digit percentage growth.
Reuters polled economists, who predicted price increases of 0.3% per month and 10.0% annually.
After a coronavirus pandemic boom, the housing market in Britain has slowed down as soaring inflation impacts consumer budgets and the Bank of England hiked interest rates.
Robert Gardner, Nationwide’s chief economist, said the slowdown had been modest so far and a shortage of homes for sale meant price growth remained firm in annual terms.
“However, headwinds are growing stronger suggesting the market will slow further in the months ahead,” Gardner said. “High inflation is exerting significant pressure on household budgets with consumer confidence declining to all-time lows.”