Data from the Office for National Statistics shows that the average house price rose 0.4 per cent from May to June – 3 per cent year-on-year – leaving the average property price at £228,384.
This is down from the 3.5 per cent figure from April to May, and is the lowest annual growth rate since August 2013 (also at 3 per cent).
The data also shows that London experienced the most significant annual fall in the UK, at minus 0.7 per cent – the lowest annual growth rate for the region since September 2009 (-3.2 per cent). The North East also suffered to the tune of -0.6 per cent annually.
The highest annual growth can be found in the West Midlands and the East Midlands, where prices rose 5.8 per cent and 4.1 per cent, respectively.
At a country level, prices in Scotland rose by 4.8 per cent annually, in Wales, 4.3 per cent, in Northern Ireland, 4.4 per cent (to June year-on-year), and in England, 2.7 per cent.
Emoov.co.uk founder and chief executive Russell Quirk says: “Yet more mixed signals for the UK property market which won’t inspire much confidence in those who remain undecided on whether or not to buy or sell this year.
“However, the positives to take are that prices are still climbing, albeit slowly, the level of stock entering the market is also picking up the pace and the number of mortgage approvals is up as well.”
Yopa chief property analyst Mike Scott adds: “With inflation (as measured by the CPI) increasing to 2.5 per cent, house price growth is barely ahead of that rate, and other reports which measure prices earlier in the home-selling process indicate that it is likely to fall further in the next few months. The outlook for next year is still very uncertain, as no one yet knows what will happen after 29 March – the date for Brexit.”
Post Office Money financial services chief executive Owen Woodley says: “First time buyers looking to get a good deal on their first home will welcome this news but the recent interest rate rise will also have given many cause to really question what they can afford in the longer term.”
While London estate agent and former RICS residential chairman Jeremy Leaf comments: “House price growth outside of London is being supported by a continuing shortage of stock whereas the capital and the southeast can’t hide behind this excuse any longer. Price drops are continuing and reflect a new realism in the market – if you want to sell your property, it needs to stand out and price is the obvious way of doing it.”
