House prices have increased at their slowest rate in five years amid concerns of a downturn in London and the South-East
The Office for National Statistics reports that the average prices increased by three per cent to £228,000 in the 12 months to August
HOUSE prices rose at the slowest pace for nearly five years – on the back of a worrying downturn in London and the South-East.
The Office for National Statistics said average prices increased by 3 per cent to £228,000 in the 12 months to August – the weakest annual growth since 2013.
But prices in the capital during the year fell by 0.7 per cent.
Upmarket Kensington & Chelsea saw a 10 per cent drop in June – the biggest monthly fall since current records began in 1995.
The ONS added the annual rate of home sales across the UK has dropped to a five year low of 66,000. George Buckley at stockbroker Nomura said a number of “London-specific issues” could be affecting prices in the capital.
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He said: “Typically when London moves the rest of the country follows with a lag.
“But there are reasons to think London is moving in its own orbit relative to the regions – such as Brexit, stamp duty and other increased costs from buy-to-let.”
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