During the month of August the price of homes grew by 0.3% compared to 0.4% growth in July. The average UK house price now stands at £195,279.
Nationwide’s chief economist Robert Gardner said the data showed that annual house price growth may be stabilising close to the pace of earnings growth which historically had been around 4%. But Gardner warned that the stable trend may not continue unless construction activity picked up to increase the supply of new homes to the market.
In July, members of the Royal Institution of Chartered Surveyors (RICS) reported the lowest-ever number of properties on their books, extending back to data from 1970, while new buyer enquirers increased.
Research from online estate agent House Simple in July revealed that property listings across the UK fell by 13%. Glasgow and Edinburgh both fell by 30% while listings in London fell 15%.
Rob Weaver, director of property at residential investment platform Property Partner, said London was the city to watch closely for house price activity. “With the recent financial turmoil in China, eyes from the east will focus even more sharply on the capital as a safe haven to park foreign investors’ cash. Financial crises often put London back in the frame.”