The UK housing market continued to witness price growth month-on-month with the trend continuing in September, according to Nationwide House Price Index.

The annual house price growth was steady at 2 per cent with the price of a home estimated to be £214,922 in September.

In fact, the annual house price growth has been confined to a range of 2 per cent to 3 per cent over the past 12 months. It suggests little change in the balance between demand and supply in the market.

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 are likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low.

“Overall, we continue to expect house prices to rise by around 1% over the course of 2018,” Nationwide said.

Though UK house price growth remained broadly stable, regional house price developments were more varied. Yorkshire and Humberside were the strongest performing regions in England, and also the UK, with prices up 5.8 per cent year-on-year. The East Midlands continued to see relatively strong growth, with prices up 4.8 per cent year-on-year.