London house prices have been falling for four consecutive months following major downward revision
Richard Snook, senior economist at PwC, comments on the latest UK house price data:
“Today’s house price release from the ONS and Land Registry show house price inflation moved down to 3.0% in the year to May 2018, from a downwardly revised 3.5% in April (originally reported as 3.9%). This takes the price of a typical UK house to £226,400, a slight increase on the previous month.
"In our latest UK Economic Outlook, released this week, we project national house price growth of around 3% in 2018, which we expect to continue in the medium term to 2025. This implies that the average UK house price could rise from £221,000 in 2017 to around £285,000 by 2025.
"London continues to be the big story in the regional trends. The strong gains in London last month have been erased by a major downward revision. April was originally reported as £484,600 but is now £478,600. These revisions, combined with May’s figure of £478,900 means that annual house price growth in London has now been negative since February 2018. Regional figures can be volatile from month-to-month but the figure supports an underlying weakness in the market, the latest figure for May shows that prices are 0.4% lower than the same time last year.
"In our regional forecasts we predict price falls in London in 2018 and 2019 of 1.7% and 0.2% respectively."
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2018 PwC. All rights reserved