Acadata has released its latest house price results for the UK, which shows that house price growth has fallen to its lowest level in 6.5 years:
House prices rebounded in October, up 0.4% – the first increase since February. The annual rate of price increases continued to slow, however, dropping to just 1.0%.
Despite this, most regions continue to show growth, the exceptions being both the South East and North East, which show modest falls on an annual basis. The average price of a home in England and Wales is now £304,433, up from £301,367 last October.
With overall annual price growth well below the rate of inflation of 2.2% (as of September), house prices in England and Wales are seeing real term falls in most regions, and are now growing at their slowest rate in over six years, since April 2012. The West Midlands and East Midlands are bucking the trend, however, with growth of 3.1% and 2.8% respectively.
All regions have seen annual house price growth reduce in the last month, with the slowdown most pronounced in the North East, dropping by 1.7% to -0.2%, and in London and Wales, with growth slowing from 3.0% to 1.8% in both cases…
In London annual price growth has slowed substantially in the last month, falling to just 1.8%, yet there has still been an increase of £10,889 in the last twelve months with the average price in London now standing at £620,571.
Transaction volumes have also fallen:
Thus, the UK housing market appears to be on a fragile footing.