House Price Index

UK house price growth lowest since June 2013

UK house prices rose by 1.7% in the year to January 2019, the lowest annual house price increase since June 2013 (1.5%), according to the latest ONS house price index (HPI).

This figure is down on the 2.2% recorded for the year to December 2018.

Key points from the January HPI:

  • average house prices fell by 0.8% between December 2018 and January 2019
  • the average property in the UK is now valued at £228,147
  • the East Midlands experienced the greatest monthly price rise (up 0.2%)
  • the North East saw the most significant monthly price fall (down 3.3%)
  • the East Midlands experienced the greatest annual price rise (up 4.4%)
  • London saw the largest annual price fall (down 1.6%)

Jonathan Hopper, managing director at Garrington Property Finders (pictured above), said: “The national pace of price growth is being weighed down by the irresistible gravitational pull of London’s falling prices.

“The sheer scale of the decline in London prices — which fell by almost as much as the UK average rose — is having a distorting effect on the national picture.”

Conor Murphy, CEO at Smartr365, added: “Slowing house price growth is no surprise — we remain without a solution to Brexit and [there’s] only nine days to go.”

Despite this, Conor stated that the fundamentals of the mortgage market remained solid.

“Lenders are developing more innovative products and near record-low interest rates are attracting demand, despite wider uncertainty.”

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