Slowest UK house price growth for a half decade in 2017

The year ended 2.6% higher than it started but London was the weakest area for the first time in 13 years.

In December, the average house price in the UK was £211,156, which was a 0.6% month-on-month increase, according to Nationwide Building Society.

The 2.6% increase, the slowest since 2012, showed a poor comparison in relation to December 2016, which held a 4.5% annual increase.

Prices were down in London to 0.5% annually, with an average of £470,992. On the other end of the spectrum, the West Midlands was the best-performing region with a 5.2% annual increase.

Wales, Scotland and Northern Ireland also saw annual increases of 3.3%, 2.6% and 2%, respectively.

Nationwide’s chief economist Robert Gardener said: “London saw a particularly marked slowdown, with prices falling in annual terms for the first time in eight years, albeit by a modest 0.5%. London ended the year the weakest-performing region for the first time since 2004.”

Robert Gardner went on to say that Brexit will play a huge role in determining house prices going forward.

Confidence in UK housing sector hits half-decade low

The Halifax bank survey showed 20% of people think house prices will drop because of rising inflation and the potential of an increase in interest rates.

This is the weakest reading since October 2017 and people under the age of 25 and living in London are the least optimistic. Correlated alongside this is the weak growth in wages, rising inflation rates, and for the first time in a decade, the Bank of England being set to increase interest rates.

The survey, which took in 2,000 British adults, saw two-thirds stating obtaining a deposit as the greatest barrier to buying a new house. Job security was also a major worry. £222,293 was the average price of a house in the UK in August.

Not surprisingly London was the only area with an entirely negative outlook to purchasing right now. The ages of 16 to 24 were the most pessimistic about buying; over 65 was the most positive group surveyed.