Data from the Office for National Statistics show that UK property prices grew 1.2 per cent from June to July, giving a nationwide average house price of £231,422.
On an annual basis this figure stands at 3.1 per cent, down from last month’s growth of 3.2 per cent, and is the lowest annual rate since August 2013’s figure of 3.0 per cent.
Breaking the data down regionally, annual growth of 5.6 per cent in the North West and 4.4 per cent in the South West and West Midlands was offset by a fall of 0.7 per cent in house prices in London, a stark contrast to last month’s annual increase of 0.3 per cent in the capital.
On a monthly basis, however, prices in London were up 0.6 per cent, giving an average property value of £484,926. This compares to £231,422 in England after a monthly rise of 1.2 per cent, and £157,368 in Wales, where house prices fell 0.2 per cent between June and July.
Furthermore, in England, Wales, and London, sales volumes on a yearly basis to May fell 16.1 per cent, 14.4 per cent, and 25.6 per cent, respectively.
Yomdel chief executive Any Soloman comments: “Not the most positive reading on the face of it with the lowest rate of price growth in nearly five years, but when viewed in a wider market context, the UK property market is putting in a far more resilient performance than previously expected.”
Post Office Money director Chrysanthy Pispinis adds: “The findings this month demonstrate that while some places like London may be cooling, other areas of the country are still showing healthy growth. Recent research conducted by Post Office Money noted… towns within a commutable distance such as Reading and Luton have seen nearly 10 per cent growth over the last year alone due to sustained interest.”
Emoov.co.uk founder and chief executive Russell Quirk says: “While many will be quick to highlight yet another landmark low in the rate of house price growth the bigger picture is that the market has firmly found its feet and is registering strong annual and monthly price growth.
“Even the London market has dusted itself down to register positive monthly growth and is the only region to see prices remain lower than this time last year.”
Housesimple.com chief executive Sam Mitchell comments: “These latest figures confirm what we already know, that the North-South divide has been turned on its head.
While property prices in the North have a spring in their step, driven by inward investment, thriving regional business hubs and a buoyant jobs market, London price growth is in reverse… many of the transactions going through at the moment are down to sellers accepting offers a fair bit below the asking price. Sellers and agents need to adjust their price expectations if they want to attract buyers.”