The average house price in the UK has increased by £9,000 in the last year to reach £227,000 in April, the latest House Price Index (HPI) has revealed.
Figures released today by the Office for National Statistics (ONS) show average prices have gone up by 3.9% in the last year to April 2018, which is the lowest annual rate since March 2017.
In the last month the average house price has increased by 0.7%. Prices were £3,000 higher in April than they were in March, the ONS reported.
Affordability
There are concerns that while price rises are slowing, it’s not enough to provide any relief for all the potential first-time buyers who are currently priced out of the market.
John Goodall, CEO of buy-to-let specialist Landbay, said: “House price growth may be beginning to slow down, but affordability remains a concern for many aspiring homeowners struggling to get a foot on the ladder.
“Insufficient house building is restricting the number of homes available for sale, and when demand begins to pick up again, this will create pressures on prices.”
Meanwhile, Jeremy Leaf, north London estate agent and former Royal Institution of Chartered Surveyors (RICS) residential chairman, said he thought the increase in house prices had more to do with the lack of supply of appropriate property in places where people most wanted to live, rather than increased confidence.
He added: “Looking forward, we do not expect major change but do hope more sellers appreciate the difference between vanity and sanity when it comes to recognising these new market conditions.”
Regional differences
Today’s ONS data has identified the South West as the region with the highest annual growth in house prices. They have increased in this area by 6.1% in the year to April 2018. The West Midlands followed hot on its heels with prices going up by 5.9%.
But in London things have not fared quite so well. The capital has recorded the lowest annual growth amongst all the regions, with prices rising by 1% over the year. The second lowest annual growth occurred in the North West, where prices went up by 2.4%.
Lucy Pendleton, founder director of independent estate agents James Pendleton, said: “The capital narrowly avoided a third consecutive month of negative annual house price growth but the gulf between London and the regions remains a sign change is in the air. It is now a stubborn fact of this market that London is bottom of the class.”
