You are here: Home - Mortgages - First Time Buyer - News -

House price growth slows as London values fall

Written by: John Fitzsimons
Annual house price growth dropped to 4.4% in February, down from 4.7% the month before, the latest house price index from the Office for National Statistics has revealed.

Prices actually fell by 0.1% month-on-month, taking the average house price to £225,047.

There were significant regional variations according to the data. The west Midlands saw prices jump 7.3% over the 12 months and the east Midlands enjoyed a rise of 6.3%, while prices in London dropped by 1%.

Jonathan Hopper, managing director of Garrington Property Finders, said though house price growth is currently “insipid” it cannot be dismissed as simply the byproduct of short supply, arguing there is genuine demand for appropriately-priced homes.

He said: “Two crucial factors could nudge the market up or down from here. Firstly the improving economic backdrop – which is putting more money into people’s pockets as wage rises finally outpace inflation – and secondly the prospect of interest rate rises.

“The freeing up of latent demand is far from a blooming in buyer confidence, but with every would-be buyer who decides it’s ‘now or never’, the market will increase its fragile momentum.”

Mike Scott, chief property analyst at estate agent Yopa, noted that prices have largely been flat since last August, and predicted year-on-year growth will continue to slow over the next few months.

He added: “With no sign of a turnaround in the London market, we expect it to continue to be the worst-performing region for the rest of this year while prices carry on increasing in the rest of the country, albeit at a slower rate.”

London fails to benefit from Help To Buy

Lucy Pendleton, founder and director of estate agent James Pendleton, argued that the London market is struggling because it is not benefiting from the “shot in the arm” that the rest of the country is getting via the Help to Buy scheme.

She added: “The market is struggling where Help to Buy gets no traction and doing well, if not very well, where it does. That’s more than a coincidence.”

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Should you charge your children for living at home?

No-one is suggesting you start charging a five-year old for doing their washing, but with around a quarter of young...