Annual house price growth slows to seven-year low

House prices increased at their lowest annual rate in over seven years in October, official figures show.

Across the UK, property values increased by 0.7% over the year to October to £233,000 on average – the lowest growth since September 2012.

In September, house prices had climbed by 1.3% annually.

The latest figures, released jointly by the Office for National Statistics (ONS), Land Registry and other bodies, showed average house prices increased over the year to £249,000 in England (0.5%); to £166,000 in Wales (3.3%); to £154,000 in Scotland (1.4%); and to £140,000 in Northern Ireland (4.0%).

The annual increase in England was driven by Yorkshire and the Humber (3.2%), the report said.

At the other end of the spectrum, house prices in London fell by 1.6% annually, while in the North East of England they decreased by 1.1%.

ONS head of inflation Mike Hardie said: “UK house price growth slowed to its lowest annual rate in over seven years, with London again providing the biggest drag, offset by growth in Northern Ireland, Wales and Yorkshire.”

Estate agents said the housing market should now pick up, following last week’s General Election result.

Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors (Rics), said: “Looking forward, we expect a general increase in prices underpinned by relatively low supply as confidence slowly returns to the market.”

Lucy Pendleton, founder director of estate agent James Pendleton, said: “New inquiries for property picked up the day of the election result and foreign buyers are matching their domestic counterparts for renewed enthusiasm.”

Gareth Lewis, commercial director of property lender MT Finance, said: “There are still many portfolio landlords getting rid of stock following tax and regulatory changes, which is also pushing down prices.”

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