Property prices increased by 0.7% in October, whilst rents grew by 1.4% in November
House price growth across the UK slowed to its lowest rate in 7 years in October, whilst rental growth reached its highest level in 2 years in November, according to the latest indices from the Office for National Statistics.
Property prices rose by just 0.7% in the year to October, nearly half September’s annual rate of 1.3% which is the lowest growth in house prices since September 2012.
According to the index, London’s price declined accelerated between the months from a modest annual fall of 0.4% in September to a 1.6% drop in October.
Other regions also saw a significant swing, such as a 2.0% rise to a 1.1% decline in the North East and growth moderating in the West Midlands from 1.6% to just 0.2%, whilst the North West saw growth halve to just 1.4%.
However, the UK rental market saw price growth lift to 1.4% year-on-year in November, up from 1.3% in the previous month and the highest level since November 2017.
Excluding London from the figures, the UK’s growth rate finally saw change for the first time this year, rising by 1.6% in the year to November compared to a static 1.5% rate for the whole of 2019 so far.
Almost every region of the UK saw a higher rate of growth than the previous index, ranging from 0.5% in the North East to the highest increase of 2.3% in the South West.
Next year, property portal Rightmove predicts house prices will increase by an average of 2% due to the General Election resulting in a “window of certainty” for buyers and sellers.