UK house prices on the rise but London sees biggest drop in a decade

HOUSE prices across England are on the rise but London has seen the biggest annual slide since the recession, new figures show.

Average prices increased by 1.2 per cent to £229,000 in May compared to this time last year, according to a report by the Land Registry and Office for National Statistics.

The North West saw the biggest growth at 3.4 per cent, while the West Midlands also had a strong year with prices up by 2.7 per cent.

This was followed by property prices in the South West, which have risen by 2.6 per cent.

But it's a different story for property prices in London where they've fallen by a shocking 4.4 per cent in a year.

It's the biggest downward slide for the capital since August 2009 when there was a 7 per cent slump in the midst of the financial crash.

In fact, property prices in the city have been steadily in decline since March 2018.

But it's still the most expensive place to live with the average price of property standing at £457,000 in May.

Housing market experts blame the dip on Brexit uncertainty, combined with "punitive" stamp duty costs.

Overall, UK house price growth has slowed down since April 2019 when average prices rose by 1.5 per cent compared to the same time the year before.

Average house prices increased annually by 3 per cent in Wales to reach £159,000, and by 2.8 per cent in Scotland to £153,000.

They also rose by 1 per cent in England to £246,000 and by 3.5 per cent in Northern Ireland to £135,000.

Jonathan Harris, director of mortgage broker Anderson Harris, said: "While prices fell in London by 4.4 per cent over the year to May 2019, affordability is still an issue for those buying in the capital and South East as prices remain relatively high compared to incomes."

But Sam Mitchell, chief executive of online estate agent Housesimple, reckons "economic factors that underpin the property market are looking strong".

He said: "The housing market is still showing sturdier than expected signs of resilience amid political uncertainty.

"Low unemployment and historically low interest rates are leading to high demand from buyers supporting house price growth, particularly in the North West and West Midlands."

Tory leader hopeful Boris Johnson has promised to slash stamp duty costs if he gets into number 10.

He said cutting it would free up more houses for first-time buyers.

Philip Hammond scrapped stamp duty on the first £300,000 of the property price for first-time buyers last year.

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