UK house price growth slowed again in September, down to its lowest annual rate in six and a half years at 0.9 per cent.
The south east became the first region to report negative annual growth, with house prices dropping a modest 0.1 per cent year on year, according to Your Move’s House Price Index.
Almost every region saw a significant slowdown in the rate of annual growth, while transactions fell 16 per cent from August, with around 72,500 sales completing last month.
While most regions saw annual price rises, month-on-month growth continued to slow across the UK, falling by 0.1 per cent in September from August.
That left the average house price in England and Wales at £302,626.
In London, Westminster saw prices plunge 9.4 per cent in the last year despite growing 4.9 per cent month to month from August.
Tower Hamlets, whose market Your Move said is comprised predominantly of flats sold to staff working near Canary Wharf, saw September prices plummet by 9.7 per cent year on year.
However, cheaper boroughs sustained the capital’s market, while in greater London prices rose 3.9 per cent year-on-year, and grew 0.4 per cent from August to September.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “The chancellor will face a difficult balancing act for housing when he comes to do his Budget at the end of this month.
“He’ll probably be keen to tackle the continuing problems with affordability whilst addressing ways to stimulate the market.”
Source: City A.M.