House price growth slows

Published: November 12, 2007

UK house price inflation continued to slow in September, with prices rising by just 0.3 per cent compared with rises of 0.5 per cent in August and two per cent in July, new figures have revealed.

The statistics, produced by the department of communities and local government (DCLG), also indicated that average price of a UK house was £220,111 in September, signaling that house prices have risen 10.8 per cent year-on-year, down from the 11.3 per cent year-on-year rise reported for August.

The figures are based on sales completions, so are published later than most other surveys. The DCLG noted that the annual house price inflation rate had decelerated to 10.1 per cent in England, 12.5 per cent in Scotland and 6.2 per cent in Wales.

Commenting on the figures, David Stubbs, senior economist at the Royal Institution of Chartered Surveyors, said: "Although today's numbers show annual house price growth remaining in double digits, the slowdown in the UK housing market can clearly be seen.

"This is the smallest rise for seven months and is the prelude to a sharper reduction in house price growth which is happening right now. Indeed, these figures show that house prices fell in five out of the twelve regions of the UK during September."

In London, annual growth in house prices fell from 17.2 per cent in August to 16.5 per cent in August.