House price growth slows to 4.2pc

Mortgage Introducer

September 28, 2015

In the East prices rose by 8.4% followed by 7.6% in the South East and 6.6% in London, but price rises were slow in the North West (0.2%), North East (0.4%) and Wales (0.9%).

On a monthly basis prices increased by a steady 0.5%, although London experienced a resurgence with prices increasing by 1.7%.

The market was slower year-on-year, as the number of completed house sales in England & Wales decreased by 13% to 70,404 compared to 80,823 in June 2014.

John Eastgate, sales and marketing director of OneSavings Bank, said: “House prices are still rising, however it is encouraging to see some moderation in the rate of growth, with this being the slowest annual increase for two years, a statistic that will no doubt be well received by prospective buyers.

“We should, however, avoid focusing too much on the short-term.

“This month’s figures might show that price growth has slowed, but the fundamentals are such that growth is inevitable over the long-term.

“Ultimately, the supply and demand imbalance will sustain property values. The UK is still desperately short of new housing, yet a combination of historically low mortgage rates and improving access to mortgage finance is sustaining demand.”

Andy Knee, chief executive of LMS, added: “London property continues to thrive… and the imbalance in house prices between various regions means buyers in London and its commuter belt have been dealt the worst hand of all.

“Prices in London and surrounding areas are well-above national averages resulting in a huge gap between other regional cities and the capital; the biggest in 20 years.”

Sign up to our daily email