17 August, 2017
Growth in United Kingdom house prices rose at a slower pace in June, yet remains close to the 5% average rate seen this year, with the slowest increases coming in London and the north-east.
Meanwhile in London there was an annual price increase of 2.9 per cent and the average property value is now £481,556 - this is after a 0.7 per cent drop since May.
At the other end of the spectrum, the City of London has seen the weakest house price growth over the previous year, with prices falling by 20% to £724,000. In Scotland, the average price increased by 2.9% over the year to stand at £144,000.
Based on completed home sales, prices rose 4.9% in June from the same month last year, the Office of National Statistics/Land Registry revealed, down from the 5% in May and 5.1% in April and a recent peak of 8.2% in June last year but better than the consensus estimate from economists of 4.3%.
"After the previous month's data showed a decline in London's house prices, it's concerning but not surprising to see a further - and more pronounced - fall in the capital's prices in June", said Jonathan Hopper, managing director at Garrington Property Finders.
England continues to be the main driver of house price growth, with prices there increasing by 5.2 per cent over the year to June to reach £240,000 on average.
In Dudley it was up 3.1 per cent to £160,041, in Sandwell the average price rose 4.1 per cent to £133,915 and in Walsall it was up 3.1 per cent to £152,314. This was followed by the East Midlands at 7.1%.
United Kingdom house price growth softened for a third consecutive month, according to official figures published on Tuesday, as the market slips on political and economic uncertainty.
The ONS said: "While the annual growth rate has slowed since mid-2016 it has remained broadly around 5% during 2017".
"Sellers who are conscious of this and are both pragmatic and flexible in their approach to pricing are most likely to guarantee a sale in today's market".
The slowest price increases were recorded in London and the north east.
"This is pushing more and more people toward the private rental sector to house them while they save, so construction needs to focus not only on more affordable homes for first time buyers, but for the rental sector as well".
"The fact that inflation has fallen from 2.9% to 2.6% and is staying there is good news for the housing market as expenditure won't feel any more squeezed than it has done over the past few months and may even persuade some to take the plunge".
