"100 days on from the vote and the dust has yet to fully settle. The market has shown resilience, but it’s too soon to talk of a rebound."
Robert Gardner, Nationwide's Chief Economist, said that the "relative stability in the rate of house price growth suggests that the softening in housing demand evident in recent months has been broadly matched on the supply side of the market".
Nationwide survey data indicates that, while new buyer enquiries have remained fairly subdued, the number of homes on the market has remained close to all-time lows, in part due to low rates of construction activity.
Regional price trends were also little changed, according to the Index. Regions in the south east of England continued to record the strongest gains even though price growth slowed noticeably in the Outer Metropolitan region (from 12.4% in Q2 to 9.6% in Q3) and in London (from 9.9% in Q2 to 7.1% in Q3).
House price growth remained subdued in Scotland (+2%) and Northern Ireland (+2.4%) and small price declines were recorded in Wales (-0.5%) and the North of England (-0.2%), all relative to Q3 last year.
Rob Weaver, Director of Investments at Property Partner, commented: “We may be seeing a slowdown but house prices are still creeping upwards month on month. There’s been stability in residential property that’s reassuring particularly post-Brexit and proof of the underlying strength in this market compared to the panic seen in the commercial sector."
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "Falling Swap rates continue to encourage lenders to reduce mortgage rates, which has meant a busy September for the mortgage market. Remortgaging numbers are high as people take advantage of cheap rates and rising equity in their homes to release some extra cash to fund a renovation or extension, rather than go to the extra cost of moving. With lenders keeping one eye on end-of-year lending numbers, we expect to see the continuation of competitive deals well into the autumn, which is great news for buyers and those remortgaging alike."
Jonathan Hopper, Managing Director of Garrington Property Finders, added: “After August’s unexpected surge, these more modest figures from the Nationwide represent a return to the post-Brexit norm. With both supply and demand slipping, average prices are creeping up almost by default.
“But even though the economic fundamentals are far from normal, so far the impact of the Brexit vote has been a soft landing rather than a slump – a point reinforced by the Nationwide’s surprisingly robust quarterly figures. Average prices across the UK rose at a faster rate during the three months after the vote than they did in the three months before it.
“That said, it’s premature to talk of a post-Brexit boost. Price rises in the wake of the vote have been flattered by a temporary injection of pent-up demand – as buyers who sat on the fence in the run-up to the referendum finally get off it.
“100 days on from the vote and the dust has yet to fully settle. The market has shown resilience, but it’s too soon to talk of a rebound.”
