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

London only region to see house price falls

Written by: John Fitzsimons
The latest house price index from the Office for National Statistics has revealed that house prices in the capital dropped by 0.7% in the 12 months to March.

It was the only region to see house prices fall over that period, according to the data.

Overall, average house prices in the UK increased by 4.2% in the year, a figure unchanged from February, with the typical property worth £224,000. This is up £9,000 from the same time last year.

While London struggled, other regions saw house prices rise substantially. In the East of England, for example, prices grew by 5.8%, while the East Midlands saw a jump of 5.6%. The North East saw the smallest growth at 2.1%.

Ishaan Malhi, chief executive officer of online mortgage broker, Trussle, noted that with house prices still rising faster than wages it is making the prospect of homeownership “increasingly tricky” for first-time buyers.

He continued: “On average, a year’s take home pay is little over 50% of the average first-time buyer deposit. For younger people, the situation is especially tough.”

Lucy Pendleton, director of London estate agents, James Pendleton, said that the situation is not as negative as it may appear for the capital, arguing the city is “ahead of the game in making much needed adjustments to maintain demand”.

She added: “Outside London, only the North East is being buffeted by inflation. Prices being achieved across the rest of the country still betray a housing market in relatively rude health. Looking at the numbers it’s less a case of a two-speed housing market, and more a case of pick any speed you like.”

However, Jonathan Samuels, chief executive officer of Octane Capital, said that the capital was a “victim of its own extraordinary success”, with a fundamental rebalancing of the housing market now taking place.

He said: “Low stock levels and continued cheap borrowing rates are preventing prices from falling while economic weakness and political uncertainty ahead of Brexit are seeing many households err on the side of caution.

“For the rest of 2018 and perhaps well into next year, the property market will likely mirror the economy, lacking any real momentum and simply idling along.”

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

  • RT @WeareJust_PR: Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too confu…
  • Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too…
  • There's only a few more days to go until #furlough ends and the #JobSupportScheme comes into force. I have explored…

Read previous post:
Pound slides as inflation drops back to 2.4%

The UK rate of inflation fell back to 2.4% in April, edging closer to the Bank of England’s 2% target,...