House price growth falls to six-year low: Nationwide

Annual house price growth slowed from 2.5% in July to 2.0% in August

Robert Gardner, Nationwide's chief economist, said: “Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on house price growth and market activity this year, though borrowing costs are likely to remain low. Overall, we continue to expect house prices to rise by around 1% over the course of 2018.

Lucy Pendleton, founder of James Pendleton, commented: “With just four months left of 2018, the biggest monthly fall since the London Olympics brings prices dramatically in line with the lender’s forecast for the year. Nationwide’s prediction of a 1% increase in 2018 would mean prices finish on just over £213,000, a level not seen since April and only around £1,500 lower than current prices.

“That would undo most of the year’s gains, so if that happens, expect the slowdown to feed into the Brexit mood music as the UK careers toward an uncertain future and possible hard Brexit in early 2019.

“The stuttering performance of house prices around this level sees them repeatedly do battle with the inflation figure. Having pipped inflation to the post in July, it’s now almost certain house prices have been washed over by CPI once again in August.

“House price support is still coming from record low unemployment and wage growth that is doing a better job of keeping pace with the rising cost of living. However, it is the Help To Buy scheme’s impact on the market that is highlighted here. For the number of Help To Buy loans to increase 21% in a year points to the huge additional demand that it has created, propping prices up at a higher level than would have been achieved in its absence.”