Average house prices in the UK continue to slide for the third consecutive month. Despite this, however, there remains an upward yearly trend.
House prices fell in June for the third month in a row, down £2,358 in the last quarter. The new analysis comes from the Your Move England and Wales House Price Index, which found that the average June house price was £301,114, down 0.2 per cent on May.
However, despite the reported decline, the general trend over the last year has been one of modest growth, with prices up 3.8 per cent on an annual basis. In particular, the East of England demonstrated strong growth, regaining its top spot amongst the regions. Prices in the East of England were up 0.3 per cent over the month, and up 6 per cent annually. In contrast, the West Midlands, which led growth in the last quarter, has fallen to third place behind the South West. Prices in the former were up 4.9 per cent annually, and in the latter, 5.4 per cent.
A North-South divide became evident in the index, with annual growth in the Midlands and South, excluding London, above average. The North and Wales both saw below average growth. In London, prime property began to make a comeback, despite annual prices in the capital falling for the second month in succession. 25 out of 33 London boroughs saw decline on a monthly basis, however annually, prices were up 3.4 per cent. Westminster set a new peak price, up 19.7 per cent annually to reach £1,865,843.
Despite fears that the general election might cause a slide in house prices, it appears that it has instead simply exacerbated a slowdown that has been evident since the onset of 2017. However, low mortgage rates make the market attractive to investors, and transaction levels in June remained strong, quelling fears of a sustained correction.
Managing Director of Your Move and Reeds Rains estate agents, Oliver Blake, said: ‘Don’t write the market off just yet. We’ve seen three months of falls, but it’s far too early to panic. Mortgage rates are still affordable and the slow down we have seen will already have helped some buyers struggling with affordability. We’re still seeing strong growth in the East and in prime London. We’re also seeing a return to the North-South divide in terms of price growth. In many ways, it feels like we’ve been here before.’