House price growth remains flat as South East sees 'sustained slowdown'

Average house prices in the UK increased by 0.2% on a monthly basis, compared with an increase of 0.5% in average prices during the same period a year earlier.

House price growth in England slipped from 3.3% to 2.9% over the year, below the stronger growth seen in other countries. Annual house prices in Wales came in at 6.2%, followed by Northern Ireland at 4.4% and Scotland at 4.1%.

The slowdown in England has largely been driven by the south and east of the country.

House prices in the south and east increased by 1.6% in the year to August 2018, compared with growth of 5.8% in the midlands and 3.4% in the north of England.

While the annual growth rates of the midlands and the north of England have remained broadly stable over the past two years, the HPI says the south and east of England has witnessed a "sustained slowdown".

The English regions with the slowest annual growth were all in the south and east, with the lowest being in London, where prices decreased by 0.2% over the year.

Sam Mitchell, CEO of Housesimple, commented: "Land Registry figures aren't telling us much that we don't already know. This is now a critical period for the property market and we'd normally expect to see a steady stream of buyers keen to purchase before Christmas.

"But this is a market that is still suffering from a supply shortage, and while buyers have the funds to purchase, the lack of properties being listed is a problem that no-one seems to have the answer to."

"The Autumn Budget is less than two weeks away, and this would be the perfect time for the Chancellor to stimulate a property market starved of supply and struggling to build any kind of momentum.

"The Chancellor froze stamp duty for first-time buyers, and he should extend the same offer to last-time buyers. By freezing stamp duty for downsizers, he could encourage more older homeowners to sell, freeing up much needed family homes for second and third steppers."