Yet another forecast has predicted a dire 2018 for UK house prices

Emma Haslett
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House prices (and castle prices) will edge up slowly next year. (Source: Getty)

Another day, another forecast predicting dire consequences for UK house prices in 2018.

Nationwide, which produces a closely-watched monthly house price index, said house price growth will be "broadly flat" next year, inching up just one per cent.

That is well below average growth of between two and four per cent this year, and the four to six per cent growth the UK experienced in 2016.

Meanwhile the lender predicts long-term growth of between three and four per cent.

"Low mortgage rates and healthy employment growth continued to support demand in 2017, while supply constraints provided support for house prices. However, this was offset by mounting pressure on household incomes, which exerted an increasing drag on consumer confidence as the year progressed," said Robert Gardner, Nationwide's chief economist.

Looking ahead, he suggested economic factors will keep price growth low in 2018.

“The UK housing market has been characterised by significant regional disparities in house prices in recent years and it is not clear how Brexit will impact these dynamics," added Gardner.

"Much will depend on the nature of the Brexit impact on the UK economy. For example, if the financial sector is adversely affected, then the London market is likely to see more of an impact, while if manufacturing firms are disadvantaged, other parts of the country may be more negatively affected, even though valuation metrics appear less stretched.”

Read more: What will happen to house prices in 2018? Here's what the experts think

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