UK house prices post slowest growth in over five years

UK house prices grew 1.7 per cent in the 12 months to January 2019, the lowest annual growth recorded since June 2013, according to HM Land Registry.

On a monthly basis, prices dropped 0.8 per cent, meaning that the average property in the UK is now valued at £228,147.

In England, annual prices rose 1.5 per cent and dropped 1 per cent monthly, leaving the average property in the country at £244,267.

The East Midlands was home to the largest annual and monthly growth, at 4.4 per cent and 0.2 per cent, respectively.

Annually, London was the worst performing area in England, recording a drop of 1.6 per cent, while the North East posted a monthly fall of 3.3 per cent.

Within London, prices fell 0.3 per cent across the month, taking the average house price to £472,230.

Moving to Wales, prices rose 4.6 per cent when looked at over the year but fell 1.3 per cent from December 2018 to January 2019. The average property value in Wales is, according to the data, £160,232.

On this, Octane Capital chief executive Jonathan Samuels says: “While the UK property market as a whole has been hit for six, prices in south east Wales have been hit for Severn.

“The abolition of the Severn Bridge tolls has had a hugely positive impact on prices in that corner of Wales… a lot of people who would traditionally have purchased in Bristol and surrounds are now looking across the estuary into Wales where your money goes a lot further.”

Foundation Home Loans marketing director Jeff Knight comments: “When it comes to buying behaviour, hesitation is certainly taking over. The flip side is that interest rates remain low and Hammond’s spring statement introduction of extra funding for affordable homes is designed to address the supply and demand shortfall.

“However, we shouldn’t let Brexit take all the blame; the fact is that lack of supply will continue to inflate prices beyond the reach of first-time buyers and we shouldn’t lose sight of this.”

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