ResidentialNov 13 2017

Annual house price growth at five-year low

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Annual house price growth at five-year low

House prices are growing at their slowest annual rate for more than five years, according to Your Move.

The estate agent’s latest house price index shows annual growth across England and Wales was just 0.8 per cent in October – the slowest since March 2012.

Growth was flat on a monthly basis, with the average house price stood at £298,438.

Transactions were also down by 5 per cent in the first nine months of 2017 compared with the same period last year.

Growth for England and Wales stood at 2.8 per cent outside London and the south east, with every other region apart from the north east and Wales seeing increases of 3 per cent or more.

In the east of England, which has recently seen strong growth, prices dropped 0.3 per cent month-on-month but were up 3.3 per cent on an annual basis.

Greater London saw prices decline by 0.3 per cent month-on-month and 2.4 per cent year-on-year.

Average prices in the top 11 of London’s 33 boroughs were down 5.6 per cent annually, while the bottom third continued to show modest growth of 1 per cent.

Across the UK, the market has undergone a strong shift from flats to houses, with flats seeing a 6 per cent reduction in sales in England and Wales.

Sales of detached houses were flat, while sales of semi-detached properties rose by 4 per cent and sales of terraced properties dropped by 1 per cent.

Halifax’s October house price index, which covers the whole of the UK, showed annual growth in house prices reached 4.5 per cent during the month – an eight-month high.

This came despite a record drop in the public’s confidence in UK house prices, which has fallen to its lowest level since December 2012.

Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “It is a challenging time for the market, but outside London many regions are showing some resilience.

“We have yet to see how this will change in the months to come, particularly following the Autumn Budget when it has been rumoured the chancellor will make announcements that may impact the
housing market. 

“The good news, however, is that housing is clearly on the political agenda and any action that supports buyers and sellers - and positive movement in the market - has to be encouraged.”

simon.allin@ft.com