According to the latest Nationwide figures, house prices increased by 6.8 per cent in the year to January taking the average cost of a home to £188,446.
This is the fifth consecutive month that annual house price growth has slowed. After taking account of seasonal factors, UK house prices are currently 2.4 per cent above their pre-crisis (2008) peak.
On a monthly basis house prices rose 0.3 per cent in January compared to 0.2 per cent in December.
Robert Gardner, Nationwide’s chief economist, said that further moderation in the pace of price growth is unsurprising, given the slowdown in housing market activity in recent months.
He commented: “The number of mortgages approved for house purchase has been around 20 per cent below the level prevailing at the start of 2014 and surveyors continue to report subdued levels of new buyer enquiries.
“If the economic backdrop continues to improve as we and most forecasters expect, activity in the housing market is likely to regain momentum in the months ahead.
“It is encouraging that the number of new homes built in England was up 8 per cent in the year to Q3 2014. However, this is still 34 per cent below pre-crisis levels and little over half the expected rate of household formation in the years ahead.”
