House price growth at lowest level for almost two years

The annual rate of growth in UK house prices has reached its lowest level since September 2013, according to figures from the Office for National Statistics.

Echoing August findings from the Nationwide housing index, the ONS reports that house price growth fell to 5.2 per cent for the twelve months to July 2015, down from 5.7 per cent for the year to June.

However, on a monthly seasonally adjusted basis prices still grew by 0.8 per cent, up from 0.6 per cent at the same time last month.

The ONS says the disparity reflects particularly strong growth in July last year, when increases reached 11.5 per cent.

The ONS says: “Although weaker, the pace of house price growth remains strong by historical standards.

“With improving economic conditions sustaining a recovery in housing demand while supply remains tight, the mismatch between demand and supply continues to support house price growth.”

Indeed, annual increases in the East and South East remain strong, with the regions witnessing price risies of 8.3 per cent and 6.7 per cent, respectively.

Only Scotland saw house prices fall over the 12 months to July, with England witnessing the most significant growth.

Average house prices in seven of the nine English regions are now at record levels, with prices in the North West surpassing the pre-downturn peak of January 2008 for the first time.