House prices across the UK have been rising in a stellar manner for months prior to the beginning of this year. In the capital city in particular, house price growth has been quite robust, actually making it difficult for many to afford the property prices within the city limits. Residents of London are finding themselves searching outside the city now and discovering houses which are not only affordable, but also providing more square footage at a lower price.

Housing experts across the country have been falling for a few months now, according to the latest housing market data. Nationwide financial data indicates August was particularly brutal in regard to house price growth. House prices declined 0.5% month on month which is the greatest drop in house price growth since the year 2012.

House owners are seeing a lack of demand for houses through property sales and that is directly affecting the value of houses everywhere in the UK. However, some housing experts see supply and demand still in balance which should result in house prices growing at a rate this year of 2% to 3%. Average house price currently sits at £214,745.

Robert Gardner with Nationwide commented on the current tone of the housing market and what lies ahead for house prices in particular. He said: “Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates. Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on house price growth and market activity this year.”