You are here: Home - Mortgages - Buy To Let - News -

House price growth falls to five-year low

0
Written by: Lana Clements
27/06/2018
House prices are rising at their slowest rate since 2013, as values in London continue to fall, according to Nationwide data.

Values increased by 2% annually in June, the slowest rise in five years, according to the lender’s data.

Month-on-month prices increased by 0.5% to reach an average £215,444.

Over the three months to the end of June, London has been the worst performing region with prices down 1.9% annually.

However, prices in the capital are still the most expensive in the country at a typical £468,845.

The East Midlands came in as the strongest growth region in the UK, with prices up 4.4% year-on-year in the second quarter to an average £181,549.

Regionally, values are lowest in the North at £127,266.

‘New market realities’

Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth has been confined to a fairly narrow range of around 2-3% over the past 12 months, suggesting little change in the balance between demand and supply in the market over that period.

“There are few signs of an imminent change.

“Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “On the one hand, the squeeze on incomes and unrealistic asking prices is reducing activity and confidence to move, particularly in price-sensitive areas such as London.

“On the other hand, the market continues to be supported by low interest rates and overall supply shortages, although we have found recently that listings and viewings are on the rise.

“This will translate into more sales if buyers and sellers recognise the new market realities.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week