House prices grow less than 1% for ninth month in a row

Annual house price growth across the UK remained below 1% for a ninth consecutive month in August as political and economic uncertainties weighed on potential buyers.

While house price growth remained fairly stable, there have been "mixed signals" from the property market in recent months, according to the Nationwide Building Society.

Nationwide's August house price index revealed prices had increased by just 0.6% year-on-year during the month, remaining fairly stable as an extended period of indecision and uncertainty surrounding Britain's departure from the European Union had been somewhat offset by record-low mortgage rates and strong employment figures.

Prices were unchanged month-on-month at an average price of £216,096. In July, prices rose at a 0.3% clip.

Surveyors reported that new buyer enquiries increased "a little" in August, though key consumer confidence indicators remained subdued.

Data on the number of property transactions on the other hand pointed to a slowdown in activity, even as the number of mortgage approvals for house purchases remained broadly stable.

Nationwide's chief economist Robert Gardner said: "Housing market trends will remain heavily dependent on developments in the broader economy.

"In the near term, healthy labour market conditions and low borrowing costs will provide underlying support, though uncertainty is likely to continue to exert a drag on sentiment and activity."