House price growth continued to slow in August, remaining broadly stable across the UK, according to the latest figures from the Office for National Statistics (ONS).
In its UK house price index for August 2018, the ONS found annual house price growth had increased by 3.2 percentage points.
This annual figure is down from 3.4 per cent in July but represents the stable level seen nationally since April 2018.
On a seasonally adjusted monthly basis, the ONS reported house prices in the UK increased by 0.3 percentage points between July and August to sit at an average of £233,000.
This figure is £1,000 higher than the month before and £7,000 higher than in August 2017.
England's slowdown was largely due to a sustained slowdown in the south and east of the country, with London witnessing the lowest growth, dropping by 0.2 percentage points over the year.
The housing market thrives on confidence and there is just too much uncertainty around...Jonathan HarrisOther regions fared slightly better. Prices in the Midlands grew by 5.8 percentage points, while those in the north grew by 3.4 percentage points, compared with an increase of 1.6 percentage points in the south and east.
Over the past 12 months house prices in Wales increased by 6.2 percentage points and Scotland saw an average increase of 4.1 percentage points.
The average price in Northern Ireland currently stands at £133,000, an increase of 4.4 percentage points over the year to Q2 2018.
Jonathan Harris, director of mortgage broker Anderson Harris, said: "House-price growth in London has been flat for the past six months and with Brexit on the horizon, this is unlikely to change in the short term.
"The housing market thrives on confidence and there is just too much uncertainty around.
"However, with mortgage rates continuing to be low as lenders compete for year-end business, those who do take the plunge will find some great deals to tempt them."
Kevin Roberts, director at Legal & General Mortgage Club, said: "Slower house price growth is certainly music to buyers’ ears but challenges remain."
Mr Roberts said saving for a deposit was still the largest barrier to homeownership, with those in London having to save for up to 17 years if buying alone.
Mr Roberts added the cost of stamp duty could discourage some homeowners further up the ladder from moving.
He said: "With the Autumn Budget fast approaching, we need to see the government deliver a clear strategy if we are to resolve our housing situation.
"Whether that be clarifying the future of the Help to Buy scheme beyond 2021, a stamp duty break for last time buyers, or building on green belt land, more action must be taken if we are to see more buyers achieve homeownership."
rachel.addison@ft.com
