Your Move has reported that average prices in England and Wales rose marginally in December, with the average home increasing just £90 in value.
The annual growth rate fell for the seventh month in a row, to just 0.2% – down from 0.9% in November and the lowest annual increase since March 2012.
The average price of a home in England & Wales finished the year up £553 year on year, but £5,200 under the peak in March. At £300,846, prices remain above the £300,000 mark, and December marked the second month in a row that prices rose after several months of falls.
London is the first region in England & Wales to see annual prices fall. Excluding the capital and the South East, both of which have seen a slowdown over the last month, growth for the rest of England and Wales remains a more respectable 3% for the year, continuing to beat inflation of 2.8% (RPI).
However, tax changes have hit demand from buy-to-let investors, and numbers of first time buyers remain below the long-term average – although with stamp duty exemptions introduced for first time buyers in the last Budget, first time buyer registrations are starting to look more promising, Your Move said. The estimated number of transactions for 2017, at 874,385, is down 5.3% on last year, and the lowest since 2013.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “The end of 2017 was relatively quiet for house movers, particularly in the capital. Outside of London, however, the majority of regions still reported growth over the month, demonstrating that there is still some strength going into the new year.”