UK house prices plunged by 0.8% between January and February this year, according to the latest figures from the Land Registry.
Over the year house prices have increased by 0.6%, which means the average property in the UK is now valued at £226,234 – therefore still on the rise.
The new data released today revealed in England, on average, house prices in February had also fallen by 0.6% in the month since January. However, annually they had gone up by 0.4%.
Meanwhile, in Wales, house prices had fallen slightly less in the second month of the year, tumbling by 0.2% since January. Annually, the rise was much higher – soaring by 4.1% taking the average Welsh property price up to £159,559.
London prices took the biggest fall, plummeting by 2% in the month to February 2019 and decreasing by 3.8% annually. The average house price in London now stands at £459,800.
‘Chilling snapshot’
Jonathan Hopper, managing director of Garrington Property Finders, said the figures provided a ‘chilling’ snapshot of the property market at the eye of the Brexit storm.
“At a national level, it is no longer a question of speed bumps and a gradual slowdown – the market is instead stuck in neutral with the handbrake on,” he said.
He also described the sheer scale of the decline in London prices as ‘breathtaking’. “In the space of a month, the annual rate of prices falls in the capital has almost doubled,” he said.
Springing back
Meanwhile, others pointed out that the statistics provided an illustration of activity during the traditionally quieter months and said the market was likely to pick up during Spring.
Jeremy Leaf, north London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chairman, said: “Transaction numbers have proved more resilient than expected, demonstrating that although business is tough realistic buyers and sellers are still seeking value, particularly in this traditionally busy spring buying season for the market.”
While Alastair McKee, managing director of One77 Mortgages, said the figures might not be as significant as they might seem.
He added: “While we’re seeing the rate of price growth slow there is still a great deal of positivity across the UK market.
“As we approach peak selling season, the continued affordability of mortgage products, a reduction in asking prices and a consistent level of stock entering the market should see more positive price growth trends blossom over the coming months.”
Surely these figures are good news, I don’t see any plunging or chilling in the figures, the last thing that any economy needs is rapid growth in house prices, regional numbers would be more meaningful, in Hampshire we can’t move for building sites.