UK house prices fall for the first time in 17 months

British building society Nationwide revealed a 0.2% decline in average house prices for September, marking the first average house price drop in 17 months.

This caused the annual rate of house price growth to fall to its lowest point in eight months, the latest evidence to suggest a softening housing market.

The house price growth rate was just 9.4% in September, compared to August’s 11% growth rate.

However, Nationwide’s Chief Economist, Robert Gardner, said that all 13 regions in the UK experienced annual price gains in spite of slower growth this month. In an official statement he added that “the outlook remains uncertain” but low interest rates will likely maintain buyer interest.

The bank’s claims manifest during a crackdown on mortgage lending rules. A day prior, the Bank of England (BoE) released data showing a drop in mortgage lending for house purchases in August for a second consecutive month.