MortgagesMay 21 2018

House prices continue to slow

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House prices continue to slow

House prices are down for the third month in a row, according to the latest England and Wales house price index by Your Move

The index found the annual rate of growth has  fallen for almost a year – 11 months in succession.

It now stands at just 1 per cent, down from 9 per cent at its height in February 2016.

But many areas have been proving resilient since prices in England and Wales were 3 per cent up on the same time last year and only London was recording an annual fall in prices.

Overall, the average price in England and Wales at the end of April stood at £302,252, which was up from £299,374 a year ago.

Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: "London remains the exception, rather than the rule when it comes to the strength of the market in the major cities of England and Wales, which remain strong.

"The market remains slow, though, when it comes to the number of transactions."

The latest data found that while annual price growth continued to fall, the decline was slowing.

Estimated sales of 50,000 in April were down by a quarter on March, which is significantly greater than the usual 5 per cent seasonal decline. Some of this was attributed to the bad weather and the "Beast from the East" at the end of February, which hit house hunting activity that would now be turning into sales.

But the report said muted activity was also underpinned by a shortage of properties being put up for sale.

The Royal Institution of Chartered Surveyors’ new instruction indicator for April continued to decline, and average stock levels on estate agents’ books remain close to all-time lows.

Carl Shave, director of Just Mortgage Brokers, said: "The figures look to confirm the trend we have been experiencing that property prices have stagnated over the last few months.

"Pockets of the country buck the trend with stronger values, however, feedback from homeowners and potential buyers in London does indicate a general decline. A steady ship will likely continue in regard to property prices with wage growth, albeit improving, in context of real earnings still remaining subdued."