Slow but steady house price growth
- House price growth remains at 1.8% for third consecutive month
- Transactions in 2018 at their lowest in five years
- Every region and 79 of the 108 unitary authority areas still record annual price rises
Monthly house prices rose modestly in August. They were up just 0.1%, but it is enough to put an end to consistent falls seen every month since March. Regional variances are still very evident. Annual price increases, by contrast, remain steady, holding at 1.8% for the third month in a row. That’s up from a 1.7% annual increase in May, but a fall from 3.8% in January and 4.5% last August.
The 1.8% increase is significantly below inflation of 2.3% (CPI), meaning real-terms falls. However, every region continues to show nominal increases in annual prices.
The average home in England and Wales is now worth £303,199, up £5,300 on the previous year.
London posted an annual price increase of 3.6% in July. The West Midlands, East Midlands and North East also all continue to record rises above inflation. The South East, where growth is weakest, nevertheless saw its annual growth increase in July, bucking the trend nation-wide.
Broadly, though, the market is flat across regions, and transactions are low – down 0.1% in August compared to July with an estimated 79,900 completed. Annually they are estimated to be down 4% on the same period in 2017, and at their lowest in five years.
The real-terms fall in prices in many regions is likely to help first time buyers, however, and many expect these to be the dominant players in the market this year. Housing related announcements expected in November’s Autumn Budget may also offer more help.
Data source: LSL Property Services