House prices fall in September

First fall in 17 months according to Nationwide house price index.

House prices fell in September, according to the latest Nationwide house price index.

The 0.2% fall follows 16 straight months of house price growth. As a result annual growth has dropped from 11% in August to 9.4%, taking the average UK house price down from £189,306 to £188,374.

What’s more, Nationwide warned there may be more falls to come.

Robert Gardner, chief economist at the building society, said: “The outlook remains uncertain. There have been tentative signs from surveyors and estate agents that buyer demand may be starting to moderate, but the low level of interest rates and strong labour market suggest that underlying demand is likely to remain robust."

Looking for a mortgage? Compare the latest rates

The picture in the regions

On a regional basis, the picture is mixed. Once again, it’s London and the South East that are seeing the strongest increases. The capital has seen prices jump an extraordinary 21% over the past year, according to Nationwide’s index. In fact its prices are now 31% above the 2007 peak. That said, prices only increased by 0.9% over the quarter. As the table below demonstrates, that makes it one of the worst performing regions in the third quarter of this year.

Region	Quarterly change	Annual change	Average price
East Anglia	3%	11%	£194,680
Northern Ireland	2.9%	10.2%	£119,782
West Midlands	2%	8.6%	£164,067
East Midlands	2%	7.8%	£157,293
Outer South East	1.6%	13.2%	£234,370
Scotland	1.3%	5.2%	£142,288
North West	1.2%	6.1%	£146,760
Yorkshire & Humberside	1.1%	5.5%	£145,265
Outer Metropolitan	1%	14.4%	£298,558
South West	1%	9.2%	£209,121
London	0.9%	21%	£401,072
Wales	-0.8%	5%	£144,096
North	-2.1%	4.3%	£121,990

Last week figures from the Land Registry suggested house prices have hit a new record high. However, as Land Registry figures are a little behind the other house price indices, Nationwide’s findings may be reaffirmed when the Land Registry publishes its next update.

Looking for a mortgage? Compare the latest rates

More on property:

Pensioner property wealth hits new record high

Government pumps £400 million into new Rent to Buy scheme

Take advantage of the mortgage price war