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House price growth hits eight-month low as London values fall – Nationwide

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  • 29/03/2018
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House price growth hits eight-month low as London values fall – Nationwide
House prices are rising at their slowest rate since last summer, with the capital’s property market the worst regional performer, according to Nationwide.

 

 

Home values increased by an average of 2.1% in the year to March, the lowest rate since August 2017, the lender’s data showed.

Month-on-month prices edged down by 0.2% and now stand at a typical £211,625.

Nationwide estimates house prices will grow by around 1% on average in 2018.

Robert Gardner, Nationwide’s chief economist, (pictured) said: “Consumer confidence has remained subdued, due to the ongoing squeeze on household finances as wage growth continues to lag behind increases in the cost of living.”

 

Regional differences

However, there were significant differences across regional markets, according to the data.

London prices have now fallen by 1% over the past year, although values remain the highest in the country at an average of £473,776.

And Scotland has managed annual growth of just 0.2%.

On other hand, Northern Ireland has seen prices rise by a bumper 7.9% and Wales by 6.1%.

For the fourth quarter in a row, regions in the North of England recorded stronger annual house price growth than those in the South.

 

New market realities

Jeremy Leaf, north London estate agent said: “This is another example of what we have seen in other surveys and on the ground – of higher and still rising prices in northern areas in contrast with London and the south east.

“Prices in the latter are turning negative as buyers and sellers come to terms with new market realities.

“Fewer forced sellers and less dependency on mortgages means that the level of price falls is staying low.

“This pattern began in early 2015 in response to higher stamp duty, tax changes, affordability and Brexit uncertainty, despite lower interest rates and unemployment,” he added.

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