UK house price growth slows to 0.9% for fourth consecutive month

Summarised from 2 outlets · Updated 21 Oct, 12:44 · Archive

UK annual house price growth weakened to 0.9% in August, with London values falling 2.2% year on year.

Annual house price growth in the UK weakened to 0.9% in August from 1.2% in July, according to Office for National Statistics figures. The average house price across the UK was £273,000. England saw average prices of £294,000 with 0.4% annual growth, while Wales recorded £216,000 (3.1% growth) and Scotland £198,000 (2.9% growth). Northern Ireland's average was £202,000 in the second quarter, up 9.2% annually.

London experienced a 2.2% annual price fall, with flat prices declining 5.0% over the 12 months to August. Flats account for half of all property sales in London compared with around a fifth across Britain. Within London, Westminster saw prices slip 14.3% to £887,000, Kensington and Chelsea fell 13.8% to £1.2m, and Camden dropped 10.6% to £798,000, according to City AM.

City AM reports that rising mortgage rates caused by the Iran war have dampened the housing market, with the average two-year fixed mortgage rate reaching 5.55%, up from 5.29% the previous month. The North East was England's strongest region with 3.2% annual inflation. Mortgage approvals have fallen to their lowest level since 2023, with transaction numbers lower month-on-month and year-on-year.

How it is being reported

• House prices ‘grind to a halt’ as London prime property hitHouse prices in London’s most sought-after areas continued to plummet in August as confidence across the country’s housing market slumped on the back of rising mortgage rates brought on by the Iran war. Areas at the centre of the capital’s prime property market shed value in August as house prices across the capital slipped by [...]City AM · 21 Oct, 12:35
• Annual UK house price growth slowed in August for fourth month in a row – ONSIn London, the average property value fell by 2.2% annually in August, driven by falling prices for flats, the Office for National Statistics said.Evening Standard · 21 Oct, 10:49

In this story: Office for National Statistics · London · England · Wales · Scotland · Northern Ireland · Westminster · Kensington and Chelsea

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