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Annual house price growth falls to seven-year low

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Annual house price growth fell to 0.9% in November - its lowest level since April 2012, according to the latest data. The East of England recorded negative growth on an annual basis for the first time since March 2012, but was the only region to see prices falling on an annual basis. The majority of unitary authorities continue to see growth, with prices up in 74 of the 108 in England and Wales outside of London.

Additionally, despite weak price growth, transaction levels rose slightly in November, up 2.5% on a seasonally adjusted basis. With an estimated 82,500 sales, they are at their highest for the month in three years. The biggest growth in transactions has been in the cheapest region in England, the North East, with transactions in the three months to October up 7% on the same period last year. By contrast, the South East saw transactions fall 4%. The average price in London rose 1.3% in October to remain 0.8% up on the same month last year – nominal growth but a real fall compared to inflation.

The top three regions for price growth remain unchanged in November. The West Midlands still leads the way with annual growth of 3.7%, followed by neighbouring East Midlands at 3.5%. However Torfaen in Wales has seen the highest growth in prices over the last year at 15.6%, supported by demand for properties from those working in the Bristol and Gloucestershire areas. More generally, Wales also continues to be the only area outside the Midlands that is (just) outpacing inflation, with prices up 2.7% annually.

Posted by MMB Finance Swindon on 18 December 2018