According to the data, house prices grew fastest in the East Midlands region increasing by 6.5% in the year to August 2018, followed by the West Midlands region which increased by 5.1% over the year. House prices in London fell by 0.2% in the year to August 2018. Annual growth in London house prices has been around zero for the last 6 months.
The UK Property Transaction Statistics for August 2018 showed that on a seasonally adjusted basis, the number of transactions on residential properties with a value of £40,000 or greater was 99,120. This is 2.6% lower compared with a year ago. Between July and August 2018, transactions increased by 1.3%.
The average price for a home in the UK now stands at £232,797.
As ever, the property market was quick to react. Here's what they're saying...
Russell Quirk, founder and CEO of Emoov.co.uk, commented: “The overall picture is a mixed bag of sweets really and while London and the more unaffordable regions of the UK continue to leave a sour taste in the mouth of those residing there, this isn’t the case for those in regions such as the Midlands and Wales where records are showing very strong price growth.
On the whole, while transactions are up on a monthly basis and keeping house price growth stimulated as a result, the wider market continues to be plagued by a reduction in buyer demand and as a direct consequence, a subdued number of transactions. The obvious knock-on effect is that the rate of price growth isn’t as impressive as a year ago, but there’s no doubt things could certainly be worse.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: "This comprehensive survey, though a little historic, commands respect as a bellwether of market activity. It confirms what we are finding on the ground, in other words a relatively flat market with no signs of major change up or down.
Certainly, a clearer regional pattern is emerging as buyers seek better value for money outside London whereas prices in the capital continue to drift down.
Looking forward, we are starting to see first-time buyers taking advantage of reduced competition from landlords for smaller properties, a trend which we hope will receive further encouragement in the Chancellor’s Budget later this month. This, combined with the fastest growth in wages in ten years and lower inflation figures, are encouraging for the market."
Jonathan Harris, director of mortgage broker Anderson Harris, says: "House-price growth in London has been flat for the past six months and with Brexit on the horizon, this is unlikely to change in the short term. The housing market thrives on confidence and there is just too much uncertainty around.
Transaction numbers are low as buyers hesitate and take a 'wait and see’ attitude unless they really have to move. However, with mortgage rates continuing to be low as lenders compete for year-end business, those who do take the plunge will find some great deals to tempt them."
Andy Soloman, founder and CEO of Yomdel.com: “While positive growth both annually and monthly is a silver lining at least, a further slow in the annual rate of growth is consistent with the wider economic picture.
Much like other sectors where we’re seeing consumers hold back on unnecessary purchases, a notable reduction in the level of property transactions across the UK is an indicator that the wait and see mentality remains prevalent on both sides of the buyer seller coin.
While this attitude remains the market will no doubt continue to stutter along, but all things considered, there’s still life in the old dog yet.”
Jeff Knight, marketing director for Foundation Home Loans commented: “On the face of it, the fact house prices are not increasing steadily means there’s more opportunity for first-time buyers. However, market uncertainty has meant existing buyers are stalling. “It’s crucial to recognise how ongoing political uncertainty and regulation impacts the market – making the case for a good supply of rental properties even more necessary.
Ongoing activity may be slowing, but ensuring a consistent supply is crucial to keep momentum ticking over in the interim. Given the financial climate, it’s also fair to say we will see numbers of people requiring additional support from specialist offerings increase.”
Sam Mitchell, CEO, online estate agents Housesimple.com, comments: "Land Registry figures aren't telling us much that we don't already know.
This is now a critical period for the property market and we'd normally expect to see a steady stream of buyers keen to purchase before Christmas. But this is a market that is still suffering from a supply shortage, and while buyers have the funds to purchase, the lack of properties being listed is a problem that no-one seems to have the answer to.
The Autumn Budget is less than two weeks away, and this would be the perfect time for the Chancellor to stimulate a property market starved of supply and struggling to build any kind of momentum. We would like to see some form of incentive that encourages older homeowners to consider downsizing.
The Chancellor froze stamp duty for first-time buyers, and he should extend the same offer to last-time buyers. By freezing stamp duty for downsizers, he could encourage more older homeowners to sell, freeing up much needed family homes for second and third steppers.
The property chain isn't all about first-time buyers - it needs to operate efficiently all the way up. When you fix a chain, there's no point just fixing one link at a time."
Dilpreet Bhagrath, Mortgage Adviser at Trussle, commented: “There are a number of reasons why house prices are barely moving and even falling in some parts of the UK. Subdued economic activity and ongoing pressure on household budgets is putting people off moving, so there is less demand from new buyers. Many people are also hesitant due to Brexit negotiations.
Many homeowners will be concerned about seeing equity they’ve built up over the years eroded by falling house prices, however a fall in house prices isn’t necessarily long-term. In the meantime, first-time buyers are slowly seeing their perspectives rise. Not only are house prices slowing, but the average two-year fixed rate mortgage has fallen for the first time in 12 months, despite two base rate rises, helping to ease the cost for borrowers.
When it comes to securing a mortgage, it’s vital that borrowers find the best deal based on true cost, factoring in fees, charges and incentives, to avoid unnecessary costs. The average homeowner could save up to £870 over the two year period by opting for a deal based on the true cost rather than the lowest interest rate."
Chrysanthy Pispinis, Post Office Money, had this to say: “Despite the continued overall slowdown in house price growth, there are areas in the UK that are still seeing strong growth year-on-year. Cities such as Manchester and Leicester have seen 9% growth in the last year, though this shouldn’t deter first-time buyers (FTBs) as properties in these areas still remain affordable for new buyers.
Other cities which are continuing to see growth and provide affordable options for FTBs include Portsmouth and Southampton, both with 8% growth over the last year. Three in five (63%) recent FTBs compromised on location to get their foot on the ladder, proving that buyers can find their first home and make their money go further by doing their research.”
Mike Scott, chief property analyst at Yopa, says: "The official government house price index shows a slight slowing of prices, with a monthly rise of 0.2 per cent and the annual rate of increase falling to 3.2 per cent. Looking at the regions, the fastest-growing over the past year was Wales, with a 6.2 per cent increase over the past year. In contrast, London has fallen by 0.2 per cent over the same period and the East of England is slowing down dramatically with a 1.1 per cent fall for the month and its annual rate of growth falling to 1.6 per cent. The South-East is the next worst-performing region with a monthly rise of just 0.1 per cent and an annual rise of 1.9 per cent.
We expect this trend to continue into the new year, with continued house price growth led by the northern and western regions while London and the southern and eastern regions of England stagnate or even fall back a little. However, growth rates since the 2008 credit crunch are still far higher in the south east than in the rest of the country, and the north and west will have to grow at a faster rate for some time if they are to catch up to the same relative position as ten years ago.'
