The average house price in England and Wales is now £294,351, according to the latest house price index from LSL Property Services and Acadata.
The report for November said the market remains unpredictable. After negligible growth in September seemed to confirm an entrenched slowdown, October house prices recorded their strongest month on month rise since the first quarter 2016.
Growth of 0.4% saw the average house price in England and Wales put on £1,045 in value. That represents the strongest growth since the 3% stamp duty surcharge on investment properties and second homes was introduced in April. Annual growth in house prices stands at 3.0%.
On an annual basis, house prices are still showing some growth at 3.0%, similar to the 3.7% recorded in September. Transaction volumes continue to be subdued, with no rebound after the summer slowdown.
Despite this, recent RICS evidence of increased buyer demand in September prompts some optimism. Recent research by the Council of Mortgage lenders also shows the continuing gap between the numbers aspiring to home ownership (72%) and current levels (62%).
While annual increases in house prices have fallen in the majority of regions, all remain in positive territory. Some regions also continue to show markedly faster growth than others.
Adrian Gill, director of Your Move and Reeds Rains estate agents, said: “There’s been a general cooling in transaction numbers and buyer appetite in the housing market, which means we’re still seeing huge differences in the price growth across di erent regions.
“What hasn’t changed is an underlying picture of strong demand and inadequate supply. More and more young adults are living with their parents, but there’s no sign they are less ambitious to get their own place. As the government looks again at housing, it will be a tall order to come up with something that meets the needs of people right across the country.”
Outside London, the country continues to see stronger growth overall, but can be divided in three: The East of England (up 7% annually), the South East (6.5%) and South West (5%), continue to show strong growth; in the West (up 4%) and East (3.8%) Midlands growth is still robust; and in Wales (0.8%), the North West (1.7%), North East (1%) and Yorks & Humber (0.7%) it’s more modest.
From leading annual house price growth in April, Greater London now trails every region other than Wales and Yorks & Humber.
The East continues to see some of the strongest performing unitary authorities, with Luton and Thurock (both up 16.5%) topping the table. On a monthly basis, however, Bournemouth in the South West (up 6.6% on the previous month and up 10.3% annually) saw the most impressive growth, followed by Rutland in the East Midlands (up 5.8% and 14.7% annually).
Transactions in Q3 have fallen across all regions, but falls are led by London, down almost a third (down 32%) on the same period last year, followed by the South East (down 17%) and the East of England and the South West (down 14%). Wales, while seeing the weakest growth in prices, saw the smallest fall in transactions [down 5%].
Richard Sexton, director of e.surv chartered surveyors, added: “In some ways despite a slow down, the housing market, like the economy, has remained surprisingly resilient since the vote for Brexit. The variety of fortunes in different areas, however, shows the challenge the government faces as it prepares its Housing Policy White Paper, expected this month.
“Despite lower transactions, homeownership remains a key aspiration for most in the UK, and there’s no sign of a generalised, significant fall in prices that makes that easier to achieve.”