Price growth accelerates in September

House price growth surprisingly accelerated once more in September, the latest Nationwide House Price Index has shown, though longer-term trends and tighter credit conditions for leveraged borrowers are still reasons for caution.

The lender's study has revealed that price growth rose to 0.7 per cent this month, up from August's 0.6 per cent figure - which was itself half a percentage point up on July's growth of 0.1 per cent.

However, annual house price inflation fell from 9.6 per cent to nine per cent, with Nationwide adding that higher funding costs would undoubtedly "take some froth out of the market" moving forwards.

Nationwide chief economist Fionnuala Earley did nonetheless advise that credit conditions remained strong for mainstream borrowers, but still advised caution.

"In light of these uncertainties, prospective buyers would be wise to think carefully about their financial position and the risks around it before entering into a house purchase decision,” Ms Earley recommended.

Earlier this month Rightmove reported that prices had fallen by 2.6 per cent on the month.

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