The pace of annual house price growth in Britain has fallen to its lowest level for almost seven years, as the real estate market in London and the South East is undergoing a significant reversal, official figures revealed today.
The average British house price increased by 0.6 percent in the year to February, compared to an annual increase of 1.7 percent in the previous month, according to data from the National Statistics Bureau and the Land Registry.
With the Brexit saga paralyzing potential buyers of homes in the southeast, the rate of annual property inflation has not been as low since September 2012.
Rapidly falling: average house prices in south-east England fell for the first time since 2011 in the year to February.
The fall in house price inflation was largely due to a fall in the real estate market in the capital, where prices fell sharply by 3.8 percent in the year to February.
And house prices in south-east England have fallen for the first time since 2011 and fell by 1.8 percent over the same period.
The fall in house prices in London was the largest since mid-2009, but the city remains the most expensive place to buy property with an average price of £ 460,000.
Mike Hardie, head of inflation at the US, said: “Annual home price growth has slowed to the lowest pace in almost seven years.
& # 39; Growth in Wales and the west of England was offset by a continuing fall in London and falling prices in the southeast, for the first time since 2011. & # 39;
Fluctuations: changes in house prices in the United Kingdom since August 2006
By area: regional fluctuations in house prices in the year until February, according to the ONS
Struggling: house prices in London have taken a lot of trouble in recent years
Duration: but the average cost of a property in the capital is still over £ 460,000
The average British house price was £ 226,000 in February, which is £ 1,000 higher than the same point a year ago.
The average house price in England rose by 0.4 percent in the year to February, while in Scotland prices fell by 0.2 percent in the course of the period, with an increase of 2.4 percent in the year to January. The average cost of a home in Scotland is now £ 146,000.
The unmistakable correction now in London is the adjustment that many have been waiting for
House price growth was strongest in Wales in the year until February, with an average 4.1 per cent increase in the cost of a home to £ 160,000. In Northern Ireland, property prices rose by an average of 5.5 percent to £ 137,000.
While house prices in London fall during the year, the area remains the most expensive place to purchase a property, followed by the southeast and east of England, at £ 316,000 and £ 290,000 respectively.
The Northeast continues to have the lowest average house price of £ 125,000 and is the only English region to exceed its pre-economic relapse peak
Jonathan Hopper, managing director of Garrington Property Finders, described the London property price scale as & # 39; breathtaking & # 39 ;.
He said: "Southeast England has had a cold in the capital, and prices in the commuter counties have now fallen for the first time in more than seven years on an annual basis."
Mr. Hopper continues: & # 39; At the front line of the market we finally see the first signs of a much delayed spring bounce, but as these data show, the market is still very volatile and after such a weak pair months, some future progress will come to a halt at its best. & # 39;
Lucy Pendleton, founder and director of independent real estate agents James Pendleton, said: & # 39; The unmistakable correction that is now taking place in London is the adjustment that many have been waiting for.
& # 39; Falling prices in the capital are a sign that sellers have finally received the message.
& # 39; Sellers have needed a firm hand to guide them to more realistic prices recently and they now embrace the power of realism to sell real estate in larger numbers. This will increase demand and transaction volumes, that is what the market needs. & # 39;
Jeremy Leaf, a broker in northern London and a former RICS living chairman, said: & These figures show that the real estate market has finally caught up to what we have seen on the ground for a while – in other words, a lot of caution and & # 39; wait and see "until political uncertainty dissolves somewhat.
& # 39; Yet transaction numbers have proven more resilient than expected, demonstrating that, although things are difficult, realistic buyers and sellers are still looking for value, especially in this traditionally busy spring-season for the market. & # 39 ;
Countering trends: Wales saw the strongest increases in property prices in the year until February
She added: "The country is now in a pregnant break while we are now waiting for buyers and sellers to catch up with what we know is already written in the annals of history – not Brexit but no deal at all, no Brexit and one that seems to be permanently in doubt. & # 39;
Howard Archer, chief economic adviser at EY ITEM Club, said the figures reinforce the overall impression that the housing market is being hampered, as buyers are cautious despite the challenging circumstances being reinforced by the recent increased Brexit and economic uncertainties – although there are there are significant variations between regions, with the overall picture dragged away by the weakness in London and the southeast. & # 39;
He added: & # 39; We suspect that house prices will only rise 1% over the course of the year and it would not be surprising if they stagnate.
& # 39; Consumers can be very careful when they commit to buying a house, especially since house prices are relatively expensive in relation to incomes.
& # 39; It also seems doubtful whether the labor market and earnings growth will support their recent improvement. & # 39;
Today, the National Social Security Office also published the latest inflation figures. The figures showed that inflation was stable at 1.9 percent in March, as a rise in fuel prices from February was offset by a fall in food prices.
The figures reduce the pressure on the Bank of England to raise interest rates. The Bank of England aims for inflation, the price increase percentage, by 2 percent.