House price growth slows in September

House price growth slows in September

According to the latest data and analysis from Your Move, annual house price growth slowed in September 2017.

The data revealed that while values reduced slightly (by 0.1%) over the month, annual growth continues to be positive at 1.3%. The average price at the end of September in England and Wales was £297,287, up £3,890 on the same month last year. Transactions dipped over the month (63,000 in September) down a fifth on last year.

Oliver Blake, Managing Director of Your Move and Reeds Rains estate agents, said: “Despite slowing price growth, particularly in the southern regions, the North continues to report positive results. The future, however, will rely heavily on stock availability, and with housing clearly on the political agenda, what government support may be offered to those looking to buy and who will ultimately influence market activity.”

The traditional North-South divide has been upended. Most recently, price growth has slowed in southern regions, while the North proves more resilient. Outside of London and the South East, annual price growth continues to be 3.3% and in Wales the market is strengthening, with transactions holding steady.

In Greater London, prices fell by 0.8% in August to take the average down 0.7% on the same time last year, however the fortunes of the individual boroughs vary widely. Even at the top end of the market, prices are still up 0.5% annually in Kensington and Chelsea, at £1,638,614, and up 13.5% (the strongest growth in the capital) in the City of London, at £967,489. In the City of Westminster, though, they’re down 14.9% at £1,346,152.

Broadly, though, growth is inversely correlated to average prices. The 11 boroughs in the top third of the market have seen prices fall an average of 2.5% in the last 12 months; the 11 mid-priced boroughs are down 0.8%; and prices in the cheapest third have continued to rise, by 2.7%.

The lowest priced 11 accounted for all three boroughs seeing new peak prices in August: Redbridge (up 2.1% in August and 7.3% annually), Croydon (increasing 0.6% monthly and 5.8% annually), and Bexley (2% and 5.1%).

The UK is still seeing solid growth in the East of England, up 4.5% annually, and the South West, up 4%. The North West and East Midlands are also seeing good figures, up 3.9% and 3.7%, respectively. Wales, the West Midlands and Yorkshire and the Humber all show more modest growth although the annual rate in these regions has increased. Annual price increases in six out of ten England and Wales regions are also still higher than annual earnings growth in the UK, which currently stands at 2.1%.

Overall, 93 unitary authority areas have recorded price rises over the year – 86% of the 108 in England & Wales. Of the 15 areas where prices have fallen, a third are in the South East. There are also 15 areas that saw a new peak average price in the month: four in the East of England, three each in the South West and Wales, two in the South East and one each in the North West, Yorkshire and the Humber and the East Midlands.

The East of England is still the strongest growing region, helped by strong performance in the likes of Bedfordshire (up 9.3% annually). Growth in the South West has narrowed the gap and includes the two strongest growing areas: Poole, up 10.5% annually, and Bournemouth, up 9.9%. Both coastal areas have benefited from strong sales of detached properties over the summer.

On an annual basis, the authority with the largest reduction in prices is Wokingham, where values have fallen by 6.9%. That area has seen one of the strongest increases in transactions over the June-August period, however, with sales up more than a quarter (27%) on the same period last year, second only to Ceredigion in Wales (up 36%). While price growth in Wales remains slower than in the fastest growth regions, it has picked up, and is now above the average of England and Wales, up 2.7% annually, against 2.1% last month.

Join our mailing list:

Leave a comment

Latest Comments

Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

view article
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

view article
Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

view article
maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

view article
maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

view article
zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

view article
Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

view article
Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article
sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

view article
Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

view article
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

view article

Related stories

More articles from Property