Small fall in house prices, says ONS

The Office for National Statistics (ONS) has reported that house prices fell by 0.3% in January.

There has been an annual price rise of 4.9%, which makes the average property in the UK valued at £225,621.

In England, the January data shows on average, house prices have fallen by 0.5% since December 2017. The annual price rise of 4.6% takes the average property value to £242,286.

The regional data for England indicates that the South West experienced the greatest monthly price rise, up by 1.4%. The North East saw the most significant monthly price fall, down by 5.5%, while London experienced a monthly rise of 1%.

John Goodall, CEO of Landbay, said: “House prices got off to a rocky start in 2018. Despite record low mortgage rates remaining largely unchanged since the rate rise, and November’s stamp duty reforms said to have already benefited 60,000 first time buyers, owning a property remains out of reach for many aspiring homeowners looking to get their foot on the housing ladder.

“If that’s how many have benefited from the stamp duty reforms already, there is no doubt that house prices will soon be back on the rise. The Chancellor’s commitment in the Spring Statement to build more affordable homes is welcome, but this needs to stop being put forward as the only solution. Encouraging institutional investment in large scale developments, specifically designed to rent rather than buy, will help to control house price growth while also improving living standards for the thousands still relying on the buy-to-let market.”

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