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UK house prices rise but London values fall

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UK house prices rose by 3.5% in the year to September 2018, up from 3.1% in the year to August 2018, data shows.

The average price of a property in the UK was £232,554 in September 2018, according to the Office for National Statistics (ONS).

Month-on-month prices were unchanged between August and September, compared with a fall of 0.4% in average prices during the same period a year earlier.

Regional overview

At the country level, the largest annual price growth recorded by the ONS was in Wales and Scotland, both increasing by 5.8% over the year to September 2018. In England, the average price increased by 3.0% over the year.

The average price in Northern Ireland increased by 4.8% over the year to Q3 between July and September 2018.

House prices grew fastest in the West Midlands region increasing by 6.1% in the year to September 2018, closely followed by the East Midlands which increased by 6.0% over the year.

House prices in London fell by 0.3% in the year to September 2018. London house prices have been falling over the year since March 2018.

London drags down the rest of UK

Jeff Knight, marketing director for Foundation Home Loans, said that never-ending political uncertainty had clearly dragged on buyer confidence, with the property market at its weakest for six years.

He added: “On the buy-to-let side activity has been supported by rising tenant demand due to numbers of landlords preparing to sell up and avoid the new buy-to-let taxation.

“Supporting prospective buyers and tenants as they navigate the market when people are unlikely to strike a deal until negotiations have come to an end is crucial. An increase in those needing specialist financial support is something lenders should have at the top of their agenda as we head into year end.”

John Goodall, CEO and co-founder of Landbay, said that accelerating growth was being held back by falling property value in London, dragging down the rest of the country.

He added: “Following years of steep price rises, affordability in the capital has become stretched. Combine this with the punitive changes to stamp duty and Brexit uncertainty, and it’s no wonder that would-be buyers and sellers are staying put.”

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