But the capital's growth in private rented sector rental rates remained stable at 0.9% in June
The UK’s annual rate of house price growth slowed in May 2019, as London experienced a sharp drop in prices between April and May, the latest index by the Office for National Statistics (ONS) reveals.
In the year to May, average house prices in the UK increased by 1.2% or £2,000, down slightly on April’s annual rate of 1.5%.
The slowdown was largely the result of an £11,831 drop in prices in London between April and May, equivalent to a 2.5% decline. Year-on-year, the capital’s average house price was 4.4% lower than May 2018; its lowest rate since August 2009’s 7.0% annual decrease.
By comparison, the North West replaced the East Midlands as the UK’s fastest growing region, with prices rising by 3.4% during the past 12 months.
In the UK’s rental market, the latest ONS index shows the growth in rates remained unchanged at 1.3% in June.
The index suggests rents in London may now be recovering as a result of a sustained increase in tenant demand, citing the September 2018 Residential Market Survey by RICS. In the year to June, rents grew in the capital by 0.9%.
Most regions of England likewise saw rental growth staying unchanged in June, with the top three performing areas – the East Midlands, South West, and Yorkshire & the Humber – reporting similar rates as in the previous index of 2.1%, 2.0%, and 1.8% respectively.
Respondents to the latest RICS survey reported growing interest from new buyers, suggesting that stability is returning to the UK’s housing market.