The latest UK HPI has been released looking at house price growth across the UK and unfortunately for the nation’s homeowners, it shows that the rate of growth is at its lowest in 63 months!
Although we’re seeing the lowest annual rate since July 2013, largely attributed to a market slowdown in the south and east of England, house prices are still up 2.7% more than they were this time last year. With the current average house price at £231,000, that’s a jump of £6,000 in value in the last 12 months.
Unsurprisingly, London is home to the lowest annual growth with prices down 1.7% in the last year, although this has reduced slightly from the 1.8% annual drop seen in September.
House price growth was also slower in England when compared to other countries in the UK down from 2.6% annual growth in September, to 2.4% in October. Northern Ireland has enjoyed an increase of 4.8% annually, followed by Scotland at 4.4% and Wales at 3.8%.
Looking at the regional picture, the North West has enjoyed the largest uplift in house price growth at a notable 4.9%, a stark contrast to the market slowdown at the other end of the table in the capital.
While London’s inner boroughs have been the driving force of the capital’s property market decline, this trend is now starting to spread to the capital’s more affordable peripherals with outer boroughs recording their first decline in price growth since September 2011.
Our CEO and Property Expert, Andy Soloman, commented:
“The lowest rate of price growth in over five years suggests that the UK property market is very much treading water at present, with the continued fog of Brexit uncertainty taking the wind from its sails.
While market sentiment remains weak, the positives are that we have seen an underlying current of buyer demand remain, although this is certainly stronger outside of the south and east of England. While this regional difference is helping to keep heads above water, London remains home to the weakest level of growth and if the market is to regain any meaningful momentum, it needs the primary engine of the capital firing on all cylinders.
Let’s not forget, that while a stalling level of price growth may reflect a less than stable economic outlook, it is far from the cliff fall of the previous market crash, and this slow but sure reduction in house prices will be welcomed by the many still priced out of the market.”
