London driving slowdown in UK house price growth

Published on

The Office for National Statistics (ONS) has reported that average house prices in the UK increased by 3.1% in the year to July 2018 (down slightly from 3.2% in June 2018).

This is the lowest UK annual rate since August 2013 when it was 3.0%.

The annual growth rate has slowed since mid-2016 and has remained under 5%, with the exception of October 2017, throughout 2017 and into 2018.

This slowdown in UK house price growth over the past two years is driven mainly by a slowdown in the south and east of England.

The lowest annual growth was in London, where prices decreased by 0.7% over the year, down from an increase of 0.3% in the year to June 2018.

Shaun Church, director at Private Finance, said: “Brexit uncertainty is the greatest test our housing market has faced since the 2008 financial crisis. The fact that property prices are still growing, albeit at a more modest rate, is a testament to the resilience of the UK property market. As gloomy predictions are made about the future of the housing market should we face a no-deal Brexit, UK homeowners should take solace in this persistent annual house price growth.

“House price performance remains incredibly varied across the UK. London is the only UK region experiencing falling prices, as buyers increasingly look to the commuter belt for more affordable properties. Meanwhile, house prices in other regions – particularly the North West – have seen annual growth of upwards of 4%. The imbalance between supply and demand continues to have a strong influence on regional affordability, and will continue to do so until the current housing shortage is addressed.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

LendInvest launches fee-free BTL options and product transfers

LendInvest has expanded its buy-to-let range with the introduction of fee-free options for both...

The Monmouthshire reports 61% rise in profits

Monmouthshire Building Society has reported a sharp rise in annual profits. The Newport-headquartered mutual saw...

Value of rental arrears falls for first time since 2021 amid easing rent growth

The average value of rent arrears has fallen year-on-year for the first time since...

Clydesdale Bank cuts residential and buy-to-let rates

Clydesdale Bank is making widespread reductions across its residential and buy-to-let mortgage ranges this...

Quantum Mortgages appoints new BDMs

Quantum Mortgages has strengthened its sales team with the appointment of two new business...

Latest publication

Latest opinions

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...

Tuning into later life lending conversations

There are certain conversations in our profession that can genuinely change the course of...

Right of Light risks: a looming shadow over construction projects

Gone are the days when a Right of Light infringement could be swiftly dealt...

Could a move to ‘enhanced advice’ also mean mandatory protection conversations?

The FCA’s recent Mortgage Market Discussion Paper (DP25/2) has got the industry talking about...

Other news

LendInvest launches fee-free BTL options and product transfers

LendInvest has expanded its buy-to-let range with the introduction of fee-free options for both...

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...

The Monmouthshire reports 61% rise in profits

Monmouthshire Building Society has reported a sharp rise in annual profits. The Newport-headquartered mutual saw...