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London drags UK house price growth to five-year low

Owain Thomas
Written By:
Owain Thomas

Average house prices in the UK increased by 3.1% in the year to July– the lowest annual growth rate since August 2013.

London dragged down the national average with prices falling by 0.7% over the year to July compared to an increase of 0.3% in June, according to figures from the Land Registry and the Office for National Statistics (ONS).

Overall, the average UK house price was £231,000 in July, up £6,000 from a year earlier and £2,000 higher than the previous month.

The North West showed the highest annual growth with prices increasing by 5.6%, followed by the South West and West Midlands, both up 4.4%.

Around the nations, house prices in England increased by 3.0% over the 12 months with the average price in England now £249,000.

Wales saw house prices rise by 4.2% to stand at £157,000, in Scotland prices increased by 3.2 to reach £152,000.

The average price in Northern Ireland rose 4.4% over the year to Q2 2018 with the price hitting £133,000.

Brexit uncertainty

Private Finance director Shaun Church noted that Brexit uncertainty was the greatest test the housing market has faced since the 2008 financial crisis.

“The fact that property prices are still growing, albeit at a more modest rate, is a testament to the resilience of the UK property market,” he said.

“As gloomy predictions are made about the future of the housing market should we face a no-deal Brexit, UK homeowners should take solace in this persistent annual house price growth.”

He added: “The imbalance between supply and demand continues to have a strong influence on regional affordability, and will continue to do so until the current housing shortage is addressed.”