House prices in England and Wales have fallen for the fifth consecutive month, new data shows.
Statistics from Your Move show the average price fell by 0.2% in July to £302,251. Housing prices remain at 1.6% compared to the same period last year.
Despite the average decline, cities including Leicester recorded rapid growth. Regions including the West Midlands recorded growth, but the south-east and east of England slowed to 0.5%.
The biggest decline was in London’s City, which fell by 19.4%. Hammersmith & Fulham and Southwark both fell by 11.7%.
Prices in Kensington and Chelsea fell by 1.9% on an annual basis to £1,765,033, remaining London’s most expensive area. The cheapest borough is Barking and Dagenham, where the average property price is 308,547.
The average price for a property in the capital is currently £625,529.
The Bank of England raised interest rates in August, but it remains to be seen how this will affect the housing market.
Announcing the UK interest rate hike, Mark Carney, the bank’s governor, said: “We expect interest rates to rise gradually. Policy needs to walk, not stand still.”
“There are a variety of possible scenarios that could arise with Brexit… but in many of those scenarios, interest rates would at least be at these levels, so this decision is consistent with that.”
“In a scenario where rates should be lowered, I am confident that the MPC, which meets eight times a year, will make the right decision to adjust rates at that time,” he added.
