Mixed signals as price inflation rises despite transactions numbers slowing
- Prices rise by 0.4% in October – the highest monthly rate since Q1 2016
- The East tops the leader board for regional price growth; London falls to eighth
October house prices recorded their strongest month on month rise since the first quarter 2016 according to the latest House Price Index issued by Acadata and Your Move’s parent company, LSL Property Services plc.
Growth of 0.4% saw the average house price in England and Wales put on £1,045 in value to reach £294,351. That’s the strongest growth since the 3% stamp duty surcharge on investment properties and second homes was introduced in April.
The East of England, in particular, saw growth of 7% annually with Luton and Thurrock (both up 16.5%) topping the table. On a monthly basis, however, Bournemouth in the South West (up 6.6% on the previous month and up 10.3% annually) saw the most impressive growth, followed by Rutland in the East Midlands (up 5.8% and 14.7% annually).
Adrian Gill, director of Your Move, says, “There’s been a general cooling in transaction numbers and buyer appetite in the housing market, which means we’re still seeing huge differences in the price growth across different regions but what hasn’t changed is an underlying picture of strong demand and inadequate supply” .