House prices set for slowdown

Growth in house prices is set to slow next year to around 2%, according to Nationwide. Annual house price growth in 2016 was exactly the same as 2015 at 4.5%, despite the Brexit vote in June. Robert Gardner, Nationwide’s chief economist, said: “We continue to think a small gain – around 2% – is more likely than a decline over 2017 as a whole, since low interest rates are expected to help underpin demand while a  shortage of homes on the market will continue to  provide support for house prices.” In London, the rise in prices slowed down significantly at 3.7% this year, compared to 12.2% last year. It is the first time since 2008 that the rate in the capital is slower than the UK average. The South saw a faster rate of house price growth than the North this year, but the difference narrowed. Wales, Scotland and Northern Ireland recorded small increases.