Pre-Brexit hit as house price growth slowest since 2021

The Nationwide building society has reported that in contrast to last year there is a house price rise of just 0.5 percent in December, the lowest level since February 2021.

The lender believes that uncertainty over the economic outlook is hampering confidence in the housing industry.

London and surrounding areas saw a small fall internally prices in 2021. The typical house price in the UK in December 2021 was lb212,281 compared to lb211,156 in December 2021.

Northern Ireland saw the largest house price rises, up 5.8%. Prices in Wales climbed 4%, in Scotland they were up 0.9% and in England they rose 0.7%.

Robert Gardner, Nationwide’s chief economist, said the most recent figures were evidence of a “noticeable slowdown” right at the end of the year, but were in line with expectations after consumer confidence fell in December.

He said: “The economic outlook is unusually uncertain,” he added, blaming the slowdown on Brexit uncertainty given wage growth and employment are generally strong.

“Near term prospects is going to be heavily determined by how quickly this uncertainty lifts, but ultimately the outlook for that housing market and house prices is decided through the performance from the wider economy – particularly the labour market.”