House price growth dips to 4-year low

House Prices Are Stagnant In London

Supply is at an all-time low

Prices in the three months to July were marginally lower than in the preceding three months, while the annual rate of growth has edged down from 5.7% in January to 2.1% in July, the lowest rate since April 2013.

The average house price is now £219,266, which is £64,603 (42 per cent) higher than its low point of £154,663 in April 2009.

Over the last three months house prices were 0.2% lower than in the previous 12 weeks and represent the fourth successive quarterly fall, the first time this has happened since November 2012. This is the lowest annual growth rate since April 2013 (2%).

Economists in a Reuters poll had expected a 2.0 percent rise.

United Kingdom house price inflation slowed to a more than four-year low in July, data from the mortgage lender Halifax and IHS Markit showed Monday.

Russell Galley, managing director of Halifax Community Bank, said the squeeze on spending power, plus the impact of property tax changes in 2016 and affordability concerns, was weighing on demand.

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"However, a continued low mortgage rate environment, combined with an ongoing shortage of properties for sale, should help continue to support house prices over the coming months", Galley added.

However, Halifax said house prices would be propped up in the long term by low levels of supply.

However, this national figure conceals considerable regional differences, with Greater London increasing by 402 per cent in comparison to 147 per cent in Scotland. Hackney has seen the largest increase in average prices per square meter since 1997 with prices rising from £814 to £6,942, or 753%, almost twice the London average of 402%.

Halifax said that while the unemployment rate in May was at the lowest level since 1975, the improvements in the jobs market were yet to be reflected in increased demand for property.

The annual rate has fallen from a peak of 10.0 per cent in March 2016. But so far all the indications are that the market is seeing a cooling rather than a correction.

Unsurprisingly this has seen the number of United Kingdom home sales declining, with the HMRC recording a 3% fall between May and June, the lowest level last October. Prospective buyers can not see much of promise on the horizon.

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