UK house price growth slows slightly – but London is diluting the figures

 

The latest Nationwide house price index for March has revealed that house prices across the country remain relatively stable despite a small slowdown in growth, but the north-south divide is having a bigger effect.

Property prices across the UK grew by an average of 2.1% in March compared to the same month the previous year, a small decrease from February’s 2.2% rise – and the smallest increase seen since August 2017. However, the change represents only a very small adjustment in the housing market as a whole, indicating that despite the current political climate, the sector remains relatively buoyant, with low unemployment levels and fewer properties on the market supporting house prices.
[crb_image link=”https://www.buyassociation.co.uk/advice/property-investment-starter-course/” image=”https://cdn2.hubspot.net/hubfs/1717782/Asset_Store/WebCTA/cta.jpg” align=”left”]
The difference in performance between London and parts of the north has also had an impact on the final figures, as the capital was the weakest performing region in March’s figures with a 1% decrease in house prices annually – the only region to see a fall. House prices in London are still the highest in the country, at around £331,047 according to Nationwide, but the number of homeowners there has fallen from 57% 10 years ago to 47% today.

Jonathan Hopper, managing director of Garrington Property Finders, said: “London’s property market shows no sign of giving up its wooden spoon, as the slowdown in the capital worsens.

“What began as a cooling of prices in the capital’s prime and super-prime postcodes is turning into an ever more widespread frost.”

Strong house price growth in the north and Midlands supports market

By contrast, for the fourth consecutive quarter, regions in the north of England have seen higher average property price growth than regions in the south. The West Midlands enjoyed the largest annual change in the first three months of the year, of 4.9%, followed by the East Midlands with 4.5%.

The north-west also recorded strong house price growth of 3.2% in the first quarter of the year compared to the same period last year, while London has seen an overall 1% decrease in the same period.

Brian Murphy, head of lending for Mortgage Advice Bureau, believes that the current north-south divide in house price performance is no surprise.

He said: “Market conditions in London and the south-east would appear to be somewhat lacklustre when compared to other areas.

“This proves that consumer confidence is still very strong outside of the capital and its commuter belt, as underscored by the ongoing paucity of stock in these areas.”

Robert Gardner, Nationwide’s chief economist, commented: “Looking ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates. Overall, we expect house prices to be broadly flat, with a marginal gain of around 1% over the course of 2018.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

London

UK house price growth slows slightly – but London is diluting the figures

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.