Figures published by Nationwide shows U.K house prices fell by 0.2 percent in September, the first decline since April 2013.
This was the first time prices had fallen on a monthly basis since April 2013, when they fell by 0.1%. As a result, the rate of annual house price growth fell from 11% to 9.4%.
However, the figures disguised wide regional variations, with average prices in London reaching a record high of £401,000, taking them 31% above their 2007 peak.
“Price growth may soften further in the final quarter of the year, given the high base for comparison” from the fourth quarter of 2013, Robert Gardner, chief economist at Nationwide, said in the statement. “The outlook remains uncertain.”
It remains to be seen if this downturn will continue or if last month was just a blip, and buy-to-let remains as strong an investment as ever.
Neighbourhood by Symmetry_mind is licensed and edited under creative commons