House prices in the UK are growing at their slowest pace in over five years according to the latest figures released.Sold house prices rose 2.7 per cent over the year to £231,000 but dropped slightly month on month, by 0.2 per cent, the Office for National Statistics (ONS) data found.
North West England led the price rise with the average sold price up 4.9 per cent in a year to £165,000, thanks to a strong jobs market in Manchester and the surrounding areas.
Yorkshire and the Humber had the second strongest year for price growth with house prices rising 4.4 per cent to £164,000. The East Midlands saw 4.3 per cent price growth to £193,000.
But in London, still by far the most expensive place to buy a home, prices dropped by 1.7 per cent year on year, to an average sold price of £474,000.
A real estate expert,Jonathan Hopper attributed this to London’s exposure to the impact of Brexit. The North East was the other region to experience falling prices, down 0.1 per cent in a year to £128,000.
“Two years of gnawing uncertainty about Britain’s post-Brexit future have chilled several regional markets to the bone,” said Mr Hopper.
“In London and North East England – two regions expected to feel the impact of Brexit more than most – average prices are falling as demand wobbles and would-be sellers hunker down and wait for things to improve before putting their home on the market.”
House prices in the City of London and Tower Hamlets, where many of those who work in financial services live, saw double digit drops. More than £55,000 was wiped from the average sold price of a home in Tower Hamlets.
But price drops in the capital were also seen as a potential bonus for buyers. Mr Hopper said: “We’re seeing a steady stream of tactical buyers emerging from the woodwork to snap up homes at large discounts.”