House prices stagnated in January, with annual growth slowing to 0.1%.
The latest figures from Nationwide, show a modest increase of 0.3% in January, taking the average UK property price to £211,966, down slightly from December’s figure of £212,281.
The report highlights the impact the uncertain economic outlook, especially surrounding Brexit, is having on buyer sentiment, having occurred against a backdrop of solid employment growth, stronger wage growth and continued low borrowing costs.
Robert Gardner, Nationwide’s Chief Economist, said: “Annual house price growth almost ground to a complete halt in January, with prices just 0.1% higher than the same time last year. This follows a subdued December when price growth slowed to 0.5%.
“Indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable in recent months, but forward-looking indicators had suggested some softening was likely.”
Nationwide expects UK house prices to rise at a low single-digit pace in 2019, as long as the economy continues to grow at a modest pace, with the unemployment rate and borrowing costs remaining close to current levels.