U.K. house prices rose slightly in September, following a modest monthly fall in August, although London house prices saw their first decline in eight years.
Prices were up by a monthly 0.2% in September, Nationwide Building Society's data showed, improving from August's 0.1% decline. Compared with September last year house prices grew by 2.0%, though prices grew by 2.1% when compared with August. The stable price rise is thanks in part to high employment and low mortgage rates.
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House prices in London however declined by a modest 0.6% on year--the first annual decline in eight years. London was the weakest performing UK region for the first time since 2005, according to Nationwide.
Whether house prices hold up as Britain disentangles itself from the European Union matters to the overall health of the economy. Over the past three decades, U.K. households have cut spending every time that house prices have fallen.
House prices could be affected if the Bank of England decides to raise interest rates at its November meeting, as is widely expected.
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(END) Dow Jones Newswires
September 29, 2017 02:34 ET (06:34 GMT)