London house prices have fallen by 0.7% over the last year contributing to the slowdown in the cost of property nationally, the Government’s official data has revealed.
Latest figures from the Office for National Statistics (ONS) show average house prices in the UK have gone up by 3% in the year to June.
This is lower than the 3.5% annual rise experienced in May and is the lowest annual rate of house price growth since August 2013.
According to the ONS, this slowdown in national prices over the past two years has been driven mainly by the sluggish market in the south and east of England.
The West Midlands saw the highest annual growth in the year to June 2018, with prices increasing by 5.8% in the region. The East Midlands was not far behind with rises of 4.1%.
But the North East of England experienced the second lowest annual growth, behind London, with prices tumbling by 0.6% in the year to June.
According to Jeremy Leaf, north London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chairman, this growth outside of London was being driven by a continuing shortage of property on the market.
The capital, he said, could not continue to hide behind this excuse any longer. He added: “Price drops are continuing and reflect a new realism in the market – if you want to sell your property, it needs to stand out and price is the obvious way of doing it.”
Regional differences
Looking at the UK by country, England recorded an increase of 2.7% over the year to June. It means the average house price in the country is £245,000.
In Wales prices went up by 4.3% putting the average property at £157,000 and in Scotland the average price increased by 4.8% to £150,000. In Northern Ireland the average home will set you back £133,000 following a 4.4% annual rise.
Owen Woodley, of Post Office Money, said the regional variations in prices can prove very helpful to first-time buyers.
He explained: “Affordability should always be the first consideration when making a mortgage application and it’s encouraging that 65% of recent first-time buyers think now is a good time to buy your first home.
“When choosing where to buy, it can really pay to investigate how the market is changing locally as there are many regions across the country that continue to see strong growth such as the Midlands and parts of Wales.”
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