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

House prices rise 1.3 per cent despite London struggles

0
Written by:
16/10/2019
The average price of a house in the UK increased by 1.3 per cent to £234,853 over the year in August.

Prices rose by 0.8 per cent from the previous month, according to the Office of National Statistics’s House Price Index, compared with a rise of 0.3 per cent during the same period a year earlier. 

On a regional basis London saw the slowest growth as prices dropped 1.4 per cent. Only the South East also saw prices fall over the year.

At the country level, the largest annual price growth was recorded in Wales, increasing by 4.5 per cent to £168,318, while Scotland saw house prices increase by 1.6 per cent to £154,549. 

The slowest annual growth was in England where prices increased by 1.1 per cent to £251,233. 

Static growth

Lucy Pendleton, founder director of independent estate agents James Pendleton, said that the London market’s head was “still in a vice”, but offers are nonetheless coming forward “which suggests buyers don’t believe this period of consolidation will last too long”.

She added: “Growth may be almost static nationwide but it would be even worse were it not for the UK’s army of first-time buyers who are putting a floor under prices with their can-do attitude.”

Paying the price

Jonathan Samuels, chief executive of specialist lender Octane Capital, said that the prospect of Brexit is weighing on the property market, keeping it “frozen in a one per cent annual price growth rut”. 

He continued: “London and the South East remain the primary drag on average prices, as they pay for the riotous growth of five or six years ago.” 

Jeremy Leaf, north London estate agent, said with the market remaining “relatively flat” the resilience was welcome as it was “reinforced by improving affordability and near record-low mortgage rates”. 

He added: “It is worth noting that a national average masks what is happening in local markets evidenced by the fall in prices in London by 1.4 per cent over the year compared with almost the whole of the rest of the country.” 

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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

  • RT @DomWrong: UK avoiding a recession but it will be harder to grow if the rest of the global economy slows according to @ArtBLondon on @Yo
  • RT @HendersonRowe: “Brexit aside, the UK will struggle to expand if the rest of the global economy is slowing down. After a strong July and…
  • RT @HendersonRowe: “Brexit aside, the UK will struggle to expand if the rest of the global economy is slowing down. After a strong July and…

Read previous post:
petrol prices rise
Cheaper petrol keeps inflation at near 3-year low

UK inflation held steady in September at its lowest level since late 2016.

Close