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House price growth slows in 2017 at 2.6%

Jan 04, 2018


UK annual house price growth ended 2017 at 2.6% compared with 4.5% in 2016 according to Nationwide's latest House Price Index.

There were significant differences in regional affordability but saving for a deposit remains the biggest challenge for buyers and London was shown as the weakest performing region - with house prices down 0.5% year-on-year.

Nationwide's chief economist Robert Gardner said: "Low mortgage rates and healthy employment growth continued to support demand in 2017, while supply constraints provided support for house prices,"

"However, this was offset by mounting pressure on household incomes, which exerted an increasing drag on consumer confidence as the year progressed. The impact of previous policy changes (including additional stamp duty on second homes) meant that demand from buy to let investors remained subdued in 2017.

"The significant disparity in house prices across the UK has been a recurring theme in recent years. In this respect, 2017 saw the beginnings of a shift, as rates of house price growth in the south of England moderated towards those prevailing in the rest of the country.

““London saw a particularly marked slowdown, with prices falling in annual terms for the first time in eight years, albeit by a modest 0.5%. London ended the year the weakest performing region for the first time since 2004.”

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