Official figures show annual house price growth in the UK continuing to slow

Average house prices in the UK increased by 5.1% in the year to November 2017, down from 5.4% the previous month, the latest official figures show.

The average house price was £226,000 in November 2017, some £11,000 higher than in November 2016 and unchanged from the previous month, according to the data from the Office for National Statistics (ONS).

Overall, the annual growth rate has slowed since the middle of 2016 but has remained broadly around 5% during 2017, the index also shows.

The main contribution to the increase in house prices came from England where house prices increased by 5.3% over the year to November 2017, with the average price in England now £243,000.

Wales saw house prices increase by 4.5% over the12 months to £153,000 and in Scotland the average price increased by 3.6% over the year to £146,000 while the average price in Northern Ireland rose 6% to £132,000.

On a regional basis, London continued to be the region with the highest average house price at £482,000, followed by the South East and the East of England at £325,000 and £290,000 respectively. The lowest average price continued to be in the North East at £128,000.

The West Midlands showed the highest annual growth, with prices increasing by 7.2% in the year to November 2017, followed by the East Midlands up 6.4% and the North West and South West, both up 6.2%.

The lowest annual growth was in London and the North East, where prices increased by 2.3% over the year, followed by Yorkshire and the Humber at 3%.

Slowing growth is good news for first time buyers, according to Ishaan Malhi, chief executive officer of online mortgage broker Trussle. ‘Those looking to get onto the property ladder should see the current slowdown in price growth as an opportunity to buy. With interest rates still extremely low and the recent changes to stamp duty, first time buyers are arguably facing better conditions than they have for some time,’ he said.

‘However, affordability is going to be an issue for many. Wage growth has failed to keep pace with inflation, so saving for a deposit is going to be that bit harder. Nevertheless, with many parts of the UK now seeing house price growth begin to level off, what was once an almost impossible task is getting a little easier, and this trend should continue over the coming months,’ he added.