London prices appear to be lagging behind other parts of the country
UK house prices rose to record highs again in August, but the rate of growth appears to be slowing.
According to the Halifax Home Price Index, the growth rate last month was 0.7 per cent, meaning prices are up 7.1 per cent compared to the same point last year.
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However, it is down compared to year-to-date figures recorded in July (7.6%) and June (8.7%), meaning growth is starting to slow.
Prices in London appear to be lagging behind the rest of the country, with annual price growth of 1.3%. This compares to double-digit growth in Wales and 6.8% in the South East.
Sales fell 62% in July as the phased end of the stamp duty holiday gave the market a respite from a hectic period during the pandemic.
Commenting on the figures, Joshua Raymond, director of financial intermediary firm XTB, said:
“The Halifax House Price Index (the UK’s longest-running monthly house price series) was weaker than expected at 0.7%, compared to the expected 1.1% rise, following a fairly steady increase throughout the second quarter. “The index has shown signs of a significant slowdown in the past few months, increasing pressure on prices,” Raymond said.
“Overall inflationary pressures continue to be a key issue for the Bank of England and other central banks, and if current trends continue, central banks may intervene and take action sooner than previously expected. “While the return to work and the easing of lockdown were expected to lead to a strong rise in property prices, it appears the UK economy still has some major hurdles to overcome.”
