House Price Growth – July 2019
The Office for National Statistics has recently released the House Price data for July 2019. The published data shows the slowest rate of growth in UK house price growth since 2012, driven mainly by a slowdown in the south and east of England.
On an annual basis house prices are still edging up overall, albeit that the rate of growth has been gradually slowing since mid-2016. The average UK house price in July 2019 was £233,000 which is up £2,000 on the same time last year. On a non-seasonally adjusted basis, this is an increase of 0.5% as compared to an increase of 1.2% a year earlier.
In England house prices increased by 0.3% over the year to July 2019, with the average price now £249,000. Scotland saw house prices increase by 1.4% over the last 12 months to stand at £154,000. Wales was the top performer with prices increasing by 4.2% to an average of £165,000. Northern Ireland remains the cheapest place to purchase a property in, with the average house price at £137,000.
On a regional basis, London continues to be the area with the highest average house price at £478,000, but London showed a reduction in prices with a fall of around £7,000 in the average price in the past year. London is followed by the South East and the East of England, which stand at £320,000 (down 2% in the year) and £292,000 (down 0.5% in the year) respectively. The North East continued to have the lowest average price at £127,000 and prices fell by 2.9% over the last year. The strongest growth was in Yorkshire and the Humber where prices rose by an average of 3.2% in the year to July 2019. The percentage change for the month of July is shown in the graphic above.
New build properties showed an annual 2% increase in price in the latest figures but those for the most recent month showed a 1% decrease in prices achieved. For existing property the figures were +1.2% on an annual basis and +0.4% for the latest month available.
As regards the property type, all property types except flats and maisonettes showed growth in the year to July 2019; semi-detached and terraced houses had the strongest growth with both at 1.1%. Flats and maisonettes showed the weakest performance with a reduction in prices of 0.3%% overall for the past year. As mentioned last time, there has been some coverage in the press about the effect of the tax changes for buy to let owners starting to reduce prices in this area of the market as investors are beginning to see how the changes affect them individually. Commentary from certain quarters regarding rights to buy for tenants will probably not help.
This article was taken from Real Estate Matters – Issue 14. Read the full publication.
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