House prices up 0.1% in September

Average house prices in the UK increased by 0.1% in September to reach £166,256, Nationwide’s latest house price index shows.

September’s average price represents a 0.3% fall when compared to September 2010, and the three-month on three-month measure of house prices was unchanged in September.

Robert Gardner, chief economist at Nationwide, says: “UK house prices continued to tread water in September, rising by 0.1% during the month. Prices were also essentially flat over the year, just 0.3% lower than September 2010.

“Sluggish demand for homes on the back of weak labour market conditions, combined with only a gradual rise in the supply of available properties, has helped to keep property prices fairly stable since the summer of 2010.”

He adds that this trend is expected to be maintained for the rest of 2011, but acknowledges that downside risks have increased as UK and global economic growth prospects have worsened.