Annual UK house price growth in December slowed to its lowest level since February 2013, according to Nationwide.
House prices grew 0.5% in 2018, compared with 2.6% in 2017. In December alone, prices fell 0.7%, which was the sharpest monthly decline in more than two years.
The latest Nationwide House Price Index showed a mixed picture throughout the UK, with prices in Northern Ireland up 5.8% in 2018 while England’s house prices grew at a more moderate 0.7%.
A north-south divide was evident in England, where house prices slowed in the south – and fell in London – but rose by between 3% and 4% in the north.
Robert Gardner, chief economist at Nationwide, said that while growth has slowed, it was in line with Nationwide’s expectations that house prices would grow about 1% in 2018.
He added: “It is likely that the recent slowdown is attributable to the impact of the uncertain economic outlook on buyer sentiment, given that it has occurred against a backdrop of solid employment growth, stronger wage growth and continued low borrowing costs.
“The economic outlook is unusually uncertain. However, if the economy continues to grow at a modest pace, with the unemployment rate and borrowing costs remaining close to current levels, we would expect UK house prices to rise at a low single-digit pace in 2019.”
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