Annual house price growth UK wide at slowest rate since September 2012

Average house prices in the UK increased by 0.6% in the year to February 2019 to £226,000, down from 1.7% in January, the latest official figures show.

It was the lowest annual rate of house price growth since September 2012 when it was 0.4%, with prices slowing over the last two years, according to the data published by the Office for National Statistics (ONS).

Year on year the biggest growth was in Wales with prices up by 4.1% to £159,559 but prices fell by 0.2% month on month.

In England prices increased by just 0.4% year on year and the lowest annual growth was in London, where prices fell by 3.8% but this was down from a decrease of 2.2% in January 2019. This was followed by the South East where prices fell 1.8% over the year.

House prices in Scotland fell by 0.2% year on year, down from a rise of 2.4% in the year to January 2019, with the average house price in Scotland now £146,000.

In Northern Ireland, where prices are gathered over a difference timescale, house prices increased by 5.5% over the 12 months to the fourth quarter of 2018 to an average of £137,000.

Within England the North West showed the highest annual growth, with prices increasing by 4%, followed by a rise of 2.9% in the West Midlands.

While London house prices are falling over the year, the area remains the most expensive place to purchase a property at an average of £460,000, followed by the South East and the East of England, at £316,000 and £290,000 respectively.

The North East continues to have the lowest average house price at £125,000 and is the only English region yet to surpass its pre-economic downturn peak.

In Wales house prices increased over the last year in 20 out of 22 local authority areas. Blaenau Gwent and Merthyr Tydfil showed the strongest growth, increasing by 16.3% to £97,000 and 11.6% to £108,000 and the most expensive area to live in was Monmouthshire, where the cost of an average house was £271,000. In contrast, the cheapest area to purchase a property was Blaenau Gwent, where an average house cost £97,000.

In Scotland prices increased year on year in 22 out of 32 local authority areas. The biggest price increase was in Midlothian, up by 9.9% and the largest decrease was in Aberdeen with a fall of 7%.

The most expensive area to live in Scotland was City of Edinburgh, where the cost of an average house was £260,000. In contrast, the cheapest area to purchase a property was East Ayrshire where an average house cost £98,000.