UK house price growth slows again as number of sales plummets

Transactions fell by 16 per cent between August and September, data shows

House price growth slowed to a six-and-a-half-year low in September with prices dropping in the southeast of England, according to the latest figures from Your Move.

The data shows the average price in England and Wales rose 0.9 per cent to £302,626 year-on-year, although it was down 0.1 per cent compared with August, after an annual increase of 4.5 per cent was recorded in September last year.

The number of transactions dropped significantly, by 16 per cent on a monthly basis, with an estimated 72,500 sales made in September.

Outside Greater London, the biggest increases in property values were recorded in the West and East Midlands, with annual growth of 2.9 per cent and 2.3 per cent respectively.

Meanwhile, Monmouthshire in Wales was by far the strongest area for property, with prices rising 12.2 per cent over the year. The average price for a detached home there has now risen to £380,000 from £340,000 in August 2017.

In the capital, prices rose 3.9 per cent year-on-year in August, and edged up by 0.4 per cent compared with July.

According to Your Move, it was lower-priced boroughs like Havering and Bexley which sustained the market, while prices fell in more expensive areas.

In Westminster, prices dropped 9.4 per cent over the year, while Tower Hamlets saw a reduction of 9.7 per cent.

With the Budget fast approaching, Oliver Blake, managing director of Your Move, said Philip Hammond should look at ways of helping more people get onto the property ladder while keeping the market buoyant.

He said: “The chancellor will face a difficult balancing act for housing when he comes to do his Budget at the end of this month.

“He’ll probably be keen to tackle the continuing problems with affordability whilst addressing ways to stimulate the market.”