UK house prices increased at a slower pace in September, data published by the Nationwide Building Society showed Friday.
London became the weakest performing region for first time since 2005, with house prices down 0.6 percent year-on-year.
On a national level, house prices grew 2 percent in September from the previous year, following August’s 2.1 percent increase. Economists had forecast a marginal 0.1 percent increase.
On a monthly basis, house prices gained 0.2 percent, in contrast to a 0.1 percent fall in August.
“We would expect a modest rise in Bank Rate, by itself, to have only a modest impact on economic activity,” Robert Gardner, Nationwide’s chief economist, said.
“Indeed, if rates are raised to 0.5 percent, monetary policy settings will still be a little more supportive than they were before Bank Rate was lowered to 0.25 percent in August 2016,” Gardner added.
Providing the economy does not weaken further, the impact of a small rise in interest rates on UK households is likely to be modest, the economist said.
In the September quarter, house prices increased 0.7 percent on quarter and 2.3 percent from the previous year.
Source: RTT News