House price growth reaches five-year low

House price growth reaches five-year low

Wednesday, September 19, 2018

The Office for National Statistics has released its latest UK House Price Index, showing that overall house prices have risen 1.2% since June 2018.

The average property value for the country is £248,611, but the picture is slightly different when looked at by region: the North West experienced the highest monthly rise with a 3.4% increase since last June, taking average house prices in the area to £165,529.

The average price in London was £484,926, an increase of 0.6%, but overall, London house prices have fallen by 0.7%.

The real-term rise of 3.1% over the last year is the lowest annual rate since August 2013.

First time buyers have also increased by 1.1% since last July.

Ishaan Malhi, CEO and founder of mortgage broker Trussle, told the Financial Reporter: “The slow house price growth in the market reflects the impact of financial uncertainty prompted by Brexit, high inflation and rising living costs.

"While slowing house price growth might be a relief for those hoping to get a foot on the ladder, it’s still a tough journey for many. A first-time buyer deposit costs just under two years’ of average earnings."