The Nationwide Building Society has reported that annual house price growth remained below 1% for the ninth month in a row in August, at 0.6%.
While house price growth has remained fairly stable, there have been mixed signals from the property market in recent months.
Robert Gardner, the Nationwide’s chief economist, said: “Surveyors report that new buyer enquiries have increased a little, though key consumer confidence indicators remain subdued. Data on the number of property transactions points to a slowdown in activity, though the number of mortgages approved for house purchase has remained broadly stable.
“Housing market trends will remain heavily dependent on developments in the broader economy. In the near term, healthy labour market conditions and low borrowing costs will provide underlying support, though uncertainty is likely to continue to exert a drag on sentiment and activity.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “The Nationwide house price index is always widely respected, not least because of its longevity and accuracy. However, it is worth bearing in mind that it tends to carry more emphasis towards the housing market in the southern part of the country rather than the north where the Halifax is traditionally stronger.
“Fairly stable house price growth suggests that the market continues to be supported by record low mortgage rates, strong employment and improving affordability irrespective of concerns about Brexit.”
Mark Harris, chief executive of SPF Private Clients, added: “Despite political and economic uncertainty, the Nationwide house price index, along with other surveys, show that many people are getting on with things. There has been too much indecision and uncertainty for an extended period, and buyers and sellers can only wait so long while politicians sort themselves out.
“On the lending front, lenders remain keen to lend and pricing remains extremely competitive as we move into the autumn. This is good news for the many people due to remortgage, as well as those taking the plunge and buying.”