House price growth slumps to five-year low

The Daily Telegraph - Business - - Business - By So­phie Christie

AN­NUAL house price growth in Britain has fallen to a five-year low, as a re­sult of con­tin­ued sub­dued lev­els of new buyer inquiries and a lack of prop­er­ties on the mar­ket, ac­cord­ing to Na­tion­wide.

Its lat­est house price index found that an­nual growth was 2pc in June, down from 2.4pc in May, while monthly prices were up 0.5pc af­ter tak­ing ac­count of sea­sonal fac­tors.

Lon­don again has proved to be the worst per­former, with prices down 1.9pc year on year, the only re­gion to see a de­cline. Nev­er­the­less, prices in the cap­i­tal are still more than 50pc above their 2007 peak, while prices in the UK over­all are only 15pc higher.

Lon­don’s av­er­age prop­erty price is now £468,845, com­pared to a UK av­er­age of £214,578. Na­tion­wide said the East Mid­lands was the strong­est per­form­ing re­gion in Eng­land, and also the UK, with prices up 4.4pc an­nu­ally.

Scot­land was the only re­gion to see a no­table pick-up in an­nual price growth this quar­ter – to 3.1pc – while there was a soft­en­ing in price growth in Wales to 4pc, and North­ern Ire­land recorded an­nual price growth of 2.1pc. Eng­land had the weak­est growth, with prices up just 1.3pc year on year.

Robert Gard­ner, Na­tion­wide’s chief econ­o­mist, said that an­nual house price growth had been “con­fined to a fairly nar­row range” of about 2pc to 3pc over the past 12 months, sug­gest­ing “lit­tle change in the bal­ance be­tween de­mand and sup­ply in the mar­ket over that pe­riod”.

He added: “There are few signs of an im­mi­nent change. Sur­vey­ors con­tinue to re­port sub­dued lev­els of new buyer inquiries, while the sup­ply of prop­er­ties on the mar­ket re­mains more of a trickle than a tor­rent.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.