E.surv has reported that annual house price growth at lowest rate since March 2012, based on July’s data.
On an annual basis, the average sale price of completed home transactions using cash or mortgages in England and Wales in July 2023 rose by just £1,300, or 0.3%, and now stands at £370,610. This is the lowest rate of annual increase since March 2012, some 11 years ago, and is the 11th month in succession in which the annual rate of price inflation has fallen.
On a monthly basis, the average price dropped in July 2023 by some £370, or just -0.1%: this was the seventh month in succession that the monthly growth rate has fallen, albeit at a slowing pace
The North East remains top in regional growth at 3.4%, while the Wales housing market is slowing after a long price boom. London now in third place in regional growth league.
Richard Sexton, director at e.surv, said: “Most regions in England continue to register positive price movement, though this has fallen below 1.0% nationally. There are some outliers with Hartlepool in North East registering double-digit price growth in the year. In addition, Greater London has moved from the bottom to higher ranks in the price growth league table. This disparity highlights the regional variations and complexities within the housing market.
“The recent decline in property prices in Wales can be attributed to a confluence of factors. The introduction of council tax premiums for second homes and vacant properties has created a new layer of complexity to the market. This policy shift has potential repercussions for both property prices and buyer behaviour, leading to a dampening effect on demand.
“Transactions for the first half of 2023 are at their lowest level since the financial crisis of 2007-09, reflecting the market’s responsiveness to economic changes, particularly rising mortgage rates. In recent weeks, positive signs have emerged as inflation shows signs of easing along, and swap rates have stabilised following a wobble in early July, bringing some assurance to the mortgage market in the second half of the year.”
