House price expected to continue the upward trend, albeit at modest 2% increase in 2017

By David Parsley for Property Week

Picture source: Shutterstock/Zoltan Gabor

UK house prices are growing at their slowest rate since November 2015, according to mortgage lender Nationwide’s latest figures.

Nationwide reported house price rose 0.2% in January, slowing from a 0.8% jump in December, to leave prices 4.3% higher than a year earlier, down from an annual increase of 4.5% the month before.

As for the rest of 2017, Robert Gardner, chief economist of Nationwide said it is “clouded, reflecting the uncertainty surrounding economic prospects more broadly.”

While the post-Brexit UK economy has performed stronger than expected, he noted that moderate employment growth and rising inflation will put pressure on households.

Nationwide is maintaining its forecast for a modest 2% increase in average house prices this year, citing low borrowing costs and a dearth of homes for sale.