House price slowdown hitting every region says Nationwide

The housing market slowdown is gathering pace and has now hit every region of the UK according to the Nationwide.

In data released over the New Year weekend, the Nationwide says the slowdown was most pronounced in the South West - which had been the strongest performing region as recently as the autumn. The SW saw annual house price growth slow from 12.5 to 4.3 per cent. 

East Anglia was the strongest performing region over the year, with average prices increasing by 6.6 per cent. Meanwhile, Scotland was the weakest performing region, with annual growth of 3.3 per cent.

Wales saw a significant slowdown in growth in the final quarter of 2022, with annual growth slowing from 12.1 per cent in Q3 to 4.5 per cent in Q4. Northern Ireland saw prices increase by 5.5 per cent during 2022, much weaker than the 12.1 per cent rise recorded in 2021.

Robert Gardner, chief executive of Nationwide, says: “England saw a further slowing in annual house price growth to 4.8 per cent, from 9.9 per cent in Q3. While East Anglia was the strongest performing region, southern England continued to see weaker growth overall than northern England.

“Within northern England (which comprises North, North West, Yorkshire & The Humber, East Midlands and West Midlands), the West Midlands was the strongest performing region with prices increasing by 6.1 per cent over the year.

“London remained the weakest performing English region, with annual price growth slowing to 4.1 per cent from 6.7 in Q3. The surrounding Outer Metropolitan and Outer South East regions saw very similar annual growth in 2022, with prices increasing by 4.2 and 4.3 per cent respectively.”

He continues: “Recent quarters have seen significant narrowing in the gap between the weakest and strongest performing regions in terms of annual growth, with Q4 2022 seeing the smallest difference - 3.3 percentage points - in the history of our regional indices, which stretch back to 1974.”

The Nationwide has also released its latest national UK-wide house price index showing that December saw a further sharp slowdown in annual house price growth to 2.8 per cent from 4.4 per cent in November.

Prices fell by 0.1 per cent month-on-month – a much smaller decline than in the previous couple of months. However, December also marked the fourth consecutive monthly price fall - the worst run since 2008.

Prices are now 2.5 per cent lower than their August peak after taking account of seasonal effects.