House price increases fell to the lowest level since January this year, according to the October survey from Hometrack .
The national housing market saw a 0.5% national rise in prices, 2.1% lower than May’s high and the lowest increase since January, although house prices for the year are still on track to have risen 15% by the new year.
Prices rose across all counties in October, with the exception of Central and East London (-0.2% and 0%) and Wiltshire (-0.1%). The strongest areas of the country are Teeside and Nottinghamshire, with rises of 1.5% and 1.3% for the last month respectively.
John Wrigglesworth, economist at Hometrack, said: ‘Continuing low mortgage rates, rising incomes and restricted supply in certain areas point to more rises to come. We are predicting 15% rises for this year and 8% for 2003, still a booming market. I am confident there will be no 90s style housing market recession.’
The London market is now a ‘tale of two cities,’ according to Hometrack. High price boroughs are showing significant falls in prices, while outer boroughs are recording rises.
Tower Hamlets recorded the greatest fall, at -0.8%, and Hillingdon the greatest rise at 1.2% over the last month. There has been a sharp drop in excess demand, with only a 0.2% rise in new buyers, but a 9.2% increase in properties available.