Property prices up 3% year on year on the UK, but falling in London
On average, house prices in the UK have risen by 3% in the 12 months to June 2018 and by 0.4% month on month to £228,384, the latest official figures show.
But the data from the Land Registry shows there is some regional differences with Wales and Scotland outperforming the rest of the country and London seeing prices fall month on month.
A breakdown of the data shows that prices increased by 4.8% year on year on Scotland and were up 0.8% month on month to an average of £150,472 while in Wales they increased by 4.3% year on year and by 1.7% month on month to £156,886.
In England prices rose year on year by 2.7% and they increased by 0.3% month on month to £245,076. In London priced fell by 0.7% year on year and were down 0.6% month on month to £476,752.
The data also shows that sales have fallen nationwide. Transactions fell by 19.3% in England, by 13.9% in Wales, by 13% in Northern Ireland and by 9.4% in Scotland.
In England, on a regional basis, prices fell by 1.9% in the North East month on month to £127,271, and were down 0.5% in the East Midlands and the South West to £187,553 and £252,558 respectively.
But prices rose on a monthly basis by 0.5% in the North West to £159,801, by 0.6% in the South East to £325,107, by 0.9% in Yorkshire and the Humber to £160,727, by 1% in the East of England to £292,632 and by 1.9% in the West Midlands to £196,015.
The mixed signals for the property market which won’t inspire much confidence in those who remain undecided on whether or not to buy or sell this year, according to Russell Quirk, chief executive of Emoov.
He pointed out that price growth remains at a five year low and this is a direct result of a fall in transactions and a lethargic market, as demonstrated by the increase in the time it’s taking to sell.
‘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. These positive uplifts on all fronts of the market are proof that the glass is still very much half full and this activity should continue to build over the coming months,’ he added.
Shaun Church, director at Private Finance, believes that a slight correction in house prices is no bad thing for the UK property market. ‘Years of steady house price hikes have created huge affordability issues for first time buyers, so the fact that annual house price growth has fallen to its lowest point in five years will be a welcome change for many,’ he said.
‘The trend has been reversed completely in the capital, and with negative price growth also seen in the North East, it could be that other regions will see a more relaxed pace of house price rises in the coming months,’ he explained.
‘House prices are still rising faster than wages and until the two are more evenly matched, affordability issues will continue to impact homeownership levels. The good news for buyers is that mortgage rates continue to be very affordable, although with interest rates on the up, it may be wise to lock into low rates sooner rather than later,’ he concluded.