According to the latest figures, transactions dipped in September and were 20% lower compared to the same month last year. However, the slowdown was led almost entirely by London and the South East.
Growth in house prices also slowed over the month. The data revealed by Acadata and LSL Property Services shows an annual house price growth of just 1.3% last month, taking the average price of a home in England and Wales to £297,287. That’s the slowest growth rate since April 2012 and the sixth month in a row in which this measure has fallen.
In Greater London, the data reveals that home prices fell 2.7% in September compared to the same month in 2016, making it the most significant fall recorded since 2009 and the aftermath of the global financial crisis. However, the housing market across the various boroughs varies, and over the past year, 11 boroughs in the top third of the market are responsible for the largest fall (2.5%), while prices in the cheapest boroughs have continued to rise (2.7%).
Outside of London and the South East, annual price growth is continuing at 3.3% and in the North, the property market has shown more resilience.
The East of England remains the highest growing region, boosted by a good performance in the likes of Bedfordshire (up 9.3% annually). The coastal areas of Poole (10.5%) and Bournemouth (9.9%) in the South West are the two strongest growth areas, having benefited from sales of detached properties. In Wales, the market is strengthening.
Commenting on the findings, Managing Director of Your Move and Reeds Rains estate agents, Oliver Blake, said: “Despite slowing price growth, particularly in the southern regions, the North continues to report positive results. The future, however, will rely heavily on stock availability, and with housing clearly on the political agenda, what government support may be offered to those looking to buy and who will ultimately influence market activity.”
