PwC economist Jamie Durham comments on today's UK house price data:
“Today’s release from the ONS and Land Registry shows house prices increased by 0.9% in the year to June 2019, the same as in May. The price of a typical UK house is £230,000, down from a peak of £232,000 in August 2018.
The slowdown in the UK’s house price growth continues to be driven by the South of England. Growth in the capital remained negative for the 16th month in a row, with prices down by 2.7% on the year before. Prices in the South East and South West also declined on the year before.
The capital and the surrounding regions are still the most unaffordable in the country, with the average property in London costing £467,000. Stamp Duty changes in 2016 and a slowdown in the buy-to-let market are likely to be putting downward pressure on prices. Brexit uncertainty is also weighing on prices and is likely to continue to do so over the coming months.
The Midlands continued to be the areas of the country with the highest growth rates, although the growth rate in the West Midlands has started to slow over the last few months."
Note: We forecast average house price growth in the UK of just over 1% in 2019. For more information, see our July edition of the UK Economic Outlook.
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