January 2018 saw house prices continue to fall in London, where prices have been falling for some time. This trend can now be seen in two other regions – the South East and the North East, with average annual prices down 0.2% and 0.7%, respectively.
The capital has seen a 4.3% annual fall.
Despite average prices in England and Wales being lower than they were in January 2017 (and down annually for the first time since March 2012), average prices continue to remain above the £300,000 mark – as they have done throughout 2017.
On a monthly basis, prices actually edged up in January – the first time they have done so following several months of declines. They increased by 0.2% (£455) to leave the average house in England and Wales worth £301,477.
Excluding London and the South East (but including the North East) prices are up 2.3% over the year. The gap between the annual rate when including and excluding London and the South East, at 2.7%, is now the widest since November 2014.
The South West (up 3.9%) and North West (3.8%) lead the table for growth, with other areas up between 2.3% and 2.6%, apart from Yorks & Humber where prices are up a more modest 1.4% annually.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “The slowdown in London can now also be seen in the South East and North East. Time will tell if the rest of England and Wales remains resilient, but the increase in January will be seen by many as positive news and an indication of continued demand.
“And, with the focus on supporting those entering the property market – including the abolishment of stamp duty for first time buyers – we may see more movement in the market which should bring benefits for all.”