The UK housing market remained flat in the last month, with the national asking price increasing by just 0.1% month-on-month. As ever, the data from Home.co.uk reveals regional variation.
Property Price Growth
House price values are still 3.3% greater than one year ago, led by growth in the East Midlands, where prices are up 6.5% compared to August 2016.
London however saw falls of 0.8% month-on-month and at present are seeing rises of just 0.4% year-on-year.
There are also fewer properties for sale, with supply falling by 4% year-on-year and properties are also spending longer on the market. This is generally the case in the East of England, the South East and London, where values tend to be greater.
Wales and the South East have also seen solid performances during the last 6 months, with prices here rising quicker than the national average. In addition, rents are rising in both of these regions, with Wales seeing the largest rise of all regions in the last year at 8.3%.
On the other hand, Scotland and the North East saw price falls during the last month of 1.1% and 0.3% respectively. The Scottish property market is slowing, with rents down by 2.2% on average since August 2016.
Doug Shephard, Director at Home.Co.uk, observed: ‘Investment remains a key driver in the current market despite the increased tax burden for landlords, but such investment is focused upon yield, both rent and potential capital gains. Hence, buy-to-let investors are looking outside of the overbought regions of London and the South East, where yields are lower and overinvestment has created oversupply of properties for rent.’
‘The Midlands and the North are seemingly now more attractive options for buy to let and, looking at home price appreciation over the last five years, these areas have much more room for growth than London, the East of England and the South East. The East of England has now been overtaken by the booming East Midlands in terms of annualised price growth,’ Shephard continued.
Concluding, Shephard said: ‘Asking rents in the Greater London region continue to fall and have fallen around 10% over the last two years and this will discourage investment and further depress asking prices. We expect further significant price falls, as observed this month, in the capital region over the autumn and winter months.’