House price growth hits 5-year low

House price growth hits 5-year low

House price growth hits 5-year low

On a month-on-month basis, house prices were flat.

'Prices have grown by 3 per cent since last June, the slowest annual rate for almost five years.

Jason Lennard, a senior economist at the National Institute for Economic & Social Research, said the institute's measure of underlying inflation fell by 0.2 percentage points to 1% in the year to July.

Inflation based on consumer price index (CPI) for the month of July came at 4.17 per cent, government data showed on Monday.

"There's a widespread caution in the property market at present, caused by the uncertainty of Brexit and the ongoing squeeze on household income, as revealed by the latest July inflation data", he said. Prices of clothing and footwear fell 6.7% in July.

England as a whole saw prices rise 2.7% but here the West Midlands (up 5.8%) and East Midlands (up 4.1%) witnessed the biggest rises.

Consumers had also to endure an increase in food and non-alcoholic drink prices, which rose by 2.3 percent. 23 per cent recorded in June. We have recently completed on properties in the East Midlands and East of England where we expect prices to continue to increase above the average for the country as a whole.

Average UK house prices, January 2005 to June 2018.

'That market is still raging like a furnace and the resulting annual growth figure is calling out the popularity of the Help to Buy scheme.

This is 5.7 per cent lower than in the same month previous year, an between May and June 2018, transactions fell by 3 per cent.


The average price in Northern Ireland was £133,000, marking an increase of 4.4% over the year.

Households were hit particularly hard with a rise in transport ticket and fuel prices as they embarked on summer holidays, with the costs climbing by 5.7 percent compared with the same month a year before.

London, it noted, has shown a general slowdown in its annual growth rate since mid-2016.

This weaker growth in United Kingdom flats and maisonettes was driven by negative annual growth in London for this property type, with London accounting for around 25% of all United Kingdom flats and maisonette transactions.

John Goodall, CEO and co-founder of Landbay, commented: "House price growth has dropped down another gear".

On the supply side, the average housing stock per estate agent has been edging up very marginally in recent months. Three newly acquired homes in Nottingham were reserved by tenants within two weeks of the sale completion and six properties in Colchester bought in mid-June are already occupied. This is 5.7 per cent lower than in the same month previous year, an between May and June 2018, transactions fell by 3 per cent.

Jeremy Leaf, north London estate agent and former RICS residential chairman, added: "Although a little out of date, these numbers represent the most comprehensive survey of United Kingdom house prices".

The dwindling and slowing house increases could highlight the beginning of a stagnant and struggling time for house sales.

The rise in inflation follows a decision by the Bank of England to raise interest rates to the highest level since 2009, putting more pressure on the cost of borrowing.

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