Nationwide says house prices growth is at slowest pace for almost six years
Average house prices now stand at £212,281, down 0.7 per cent on the previous month
HOUSE prices slowed sharply at the end of 2018 recording its weakest annual growth in nearly six years, according to a property index.
Growth slowed from 1.9 per cent in November to 0.5 per cent in December, Nationwide Building Society said, the slowest rate since February 2013.
House prices were also down by 0.7 per cent month-on-month at the end of the year, with the national average now at £212,281.
London and some commuter belt areas surrounding the capital have seen house prices dip year-on-year.
In the capital, the average house price in the fourth quarter of 2018 was £466,988 - 0.8 per cent lower than the same period in 2017.
The weakest performer regionally for annual house price growth was the Outer Metropolitan area, which includes Reading, Slough, Windsor and Maidenhead and Wokingham.
Average house prices in the UK
HERE are average house prices across the UK's alongside the annual change, according to Nationwide Building Society:
- Northern Ireland, £139,599, 5.8 per cent
- East Midlands, £184,283, 4 per cent
- Wales, £156,891, 4 per cent
- Yorkshire and Humberside, £157,436, 3.7 per cent
- West Midlands, £188,163, 2.9 per cent
- North West, £160,984, 2.2 per cent
- South West, £244,304, 2 per cent
- East Anglia, £228,014, 2 per cent
- North East, £125,813, 1 per cent
- Scotland, £147,856, 0.9 per cent
- Outer South East (includes Bedford, Brighton and Hove, Milton Keynes, Aylesbury, Portsmouth and Southampton), £277,117, 0 per cent
- London, £466,988, minus 0.8 per cent
- Outer Metropolitan (includes Reading, Slough, Windsor and Maidenhead and Wokingham), £356,531, minus 1.4 per cent
Here, house prices fell by 1.4 per cent annually in the final three months of the year, reaching £356,531 on average.
Northern Ireland was the strongest performer, with house prices up by 5.8 per cent on the year before to reach £139,599 on average, followed by the East Midlands and Wales, where house prices shot up by four per cent over a year.
In Scotland, house prices in the fourth quarter of 2018 were 0.9 per cent higher annually, at £147,856 on average.
Robert Gardner, Nationwide's chief economist, put the slowing rate down to weakened consumer confidence and a drop in inquiries from new buyers.
On the North-South house price divide narrowing, he said: "This trend was not entirely unexpected, however, as it followed several years of sustained outperformance by the South (especially London and Outer Metropolitan) which left affordability more stretched in these areas.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa - It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move.
Help to Buy equity loan - The Government will lend you up to 20 per cent of the home's value - or 40 per cent in London - after you've put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa - This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25 per cent on top.
Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones.
"First dibs" in London - London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Starter Home Initiative - A Government scheme that will see 200,000 new-build homes in England sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest on the website.
"The price of a typical home in the South of England (£329,240) is still almost double that in the North (£166,642)."
Howard Archer, chief economic adviser at EY ITEM Club blamed Brexit and economic uncertainty for the lack of confidence.
Meanwhile Jeremy Leaf, a north London estate agent added: "Unfortunately, they are confirming a bit of a wake-up call for the housing market in that after steady progress, without much change one way or the other, prices have experienced a nasty bump."
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "Lenders remain keen to lend and mortgage deals competitive.
"As long as borrowers can meet affordability criteria, whether they are taking out a new mortgage or switching to another deal, there will be plenty to attract them for a while yet."
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