LONDON AND SOUTH EAST HOLD BACK HOUSE PRICE GROWTH
- Annual growth retreats back into single figures, as house prices pause in December
- Values in London & the South East cooling, while price growth across other regions remains steady
- Growth accelerates at top end of the market in 2014, but price rises slowing at bottom rungs
- Total home sales across 2014 up 18% year-on-year, as stamp duty reforms boost activity in December
Adrian Gill, Director of Your Move estate agents, comments: “There was a brief interlude in the tempo of house price growth in December, with values pausing for breath after a chorus of uninterrupted monthly climbs since May 2013. On a monthly basis, property price inflation peaked last January, and has gently petered out over the course of the past year. This has pruned annual house price growth back to single digit territory again, recording a steadier 9.6% rise in average property values in England and Wales in the year ending December, down from 10.6% recorded in November.
“The recent Christmas chill has emanated from London and the South East. Typically, the South East pocket of the country has been out in front of the pack, but we’re seeing an about-turn. Property values in the capital and surrounding areas are beginning to concede ground after significant advancement over the last year. Average house prices dropped in a third of all London boroughs in the month to November, with Southwark experiencing the sharpest fall in average values of 3.1%.
“Monthly house price growth has continued if the exceptional London and South East regions are excluded from our calculations. Similarly, annual price rises across England and Wales are stable when these regions are omitted, as home values across the rest of the country stand firm and continue forward on their calmer trajectory."