Property market continues to cool
House prices in England and Wales edged ahead by 0.4% during September as the property market continued to cool according to Government figures.
The rise followed a gain of 0.2% during August and 0.1% in July, which was the slowest increase for more than a year, according to the Land Registry.
Annual house price inflation slowed during the month to 8.7%, leaving the average property costing £183,896.
Yorkshire and the Humber overtook London as the region with the highest monthly house price growth, with an increase of 2%. London’s house price rise was 1.3% in September, a slight dip from last month’s increase of 1.5%. The London average price was £354,272.
Four regions experienced negative price movement, the greatest being West Midlands with a change of minus 0.7% for the month. The East Midlands fell by 0.2%, with the South East and South West both down by 0.3%.
All regions have achieved price growth over the year, with the weakest annual rise being in the West Midlands with an increase of 4.1%.
The figures add to growing evidence that the property market is beginning to slow down in response to higher interest rates and affordability constraints.
Howard Archer, chief UK economist at Global Insight, said: “The figures fit in the with the story that the house market is cooling. I would expect to see the annual inflation rate come down further in the coming months.”
The recent turbulence in global credit markets is expected to have a cooling effect on the market, leading to higher costs for some mortgages and making lenders become more risk-averse.
The British Bankers’ Association (BBA) said the number of house purchase approvals dropped by 27% in September to 52,685, from 72,155 last year.