UK House Price Growth Slows To Lowest Annual Rate In 5 Yrs
The average value of British houses has increased by 3.1 per cent over the last 12 months, which is the lowest rate of annual growth in five years.
According to the latest House Price Index from the Office for National Statistics (ONS), property price growth was only lower in August 2013 when it was a mere 3 per cent.
While it has generally remained below five per cent since mid-2016, this slowdown marks a significant shift in the property market.
Despite the average UK house price increasing by £6,000 between July 2017 and July 2018, as well as £2,000 from June this year, it only reached £231,000 during the height of the summer.
London, in particular, has had an unsuccessful year when it comes to its housing market, with prices actually decreasing by 0.7 per cent over the 12-month period. This is a marked contrast between the 0.3 per cent annual growth rate in June 2018.
With house prices in the capital averaging £485,000, these small changes make a huge difference to the overall value of properties here. Indeed, prices are around £3,000 below what they were in July 2017 (£488,527).
Despite this, London’s properties remain the most expensive in the country, followed by the south-east where houses and flats averaged £327,002 in July 2018.
Property prices could decline even further if housebuilding projects pick up around the UK. Indeed, Brits could see tradesmen fitting corrugated roofing sheets up and down the country to boost the number of residences on the market and help those who are struggling to get on the housing ladder, despite the recent house price slowdown.