House prices rebound in October

House prices rebound in October

House prices rebounded in October with a rise of 0.4 per cent on the previous month, marking the first monthly increase since February.

According to the latest house price index from estate agents Your Move, the average price of a home in England and Wales was £304,433, up from £301,367 last October.

Most regions continued to show growth, with the exception of the south east and north east, which showed modest falls on an annual basis.

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But the annual rate of price increases overall continued to slow, dropping to just 1.1 per cent.

Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: "Whilst price growth has slowed considerably in England and Wales, the fact that there is a relatively strong economic backdrop, and there have been three consecutive months of growth, means it’s not all doom and gloom."

With overall annual price growth below the rate of inflation of 2.2 per cent as of September, house prices in England and Wales saw real term falls in most regions, and were growing at their slowest rate in six years, according to Your Move.

But the West Midlands and East Midlands bucked the trend, with annual growth of 3.1 per cent and 2.8 per cent respectively.

Estimated sales for October 2018 were 6 per cent down on the same month in 2017, but 2 per cent higher than October 2016.

In London annual price growth slowed substantially in the past month, falling to just 1.8 per cent, yet there was still an increase of £10,889 in the past 12 months with the average price in London now at £620,571.

At the top of the market in London, Kensington and Chelsea remained the most expensive borough with an average price of £1,754,706. This was down 0.8 per cent on a year before. The City of London recorded the biggest rise in London, with prices up 11 per cent.

Daniel Bailey, principal at Middleton Finance, said: "The property market in the UK is very regional and some areas of the country are seeing reduced prices and other areas prices still holding firm. 

"The majority of my clients are in the Sheffield area and the north west. The market is very competitive and it is definitely a sellers market. There is still a lack of property on the market and a good appetite from first time buyers and home movers.

"I have experienced clients buying at asking price and some clients going beyond asking price due to the number of interested parties in the same property."