LONDON: House price growth slowed to 2.1% in August, from 2.9% in July, amid fears Brexit-fuelled inflation is placing pressure on household spending, says the Nationwide.
Property values fell for the first time since May, down 0.1% month-on-month to an average of £210,495.
The number of mortgages approved for house purchases fell to a nine-month low of £65,000 in June.
However, property prices are still predicted to rise by 2% in 2017.
“Wages have been failing to keep up with the cost of living in recent months and consumer sentiment has weakened,” said Robert Gardner, Nationwide’s chief economist.
“In some respects, the slowdown in the housing market is surprising, given the ongoing strength of the labour market.”
In the three months to June, the economy created 125,000 jobs and unemployment fell to 4.4% – the lowest rate for over forty years.
Mortgage rates have also remained close to all-time lows.