28th October 2014
House prices dipped by 0.2% between August and September to £177,299, adding to evidence that the property market may be starting to cool.
The average property value in England and Wales was well below the November 2007 peak of £181,324, but despite the month-on-month fall in prices, annual growth was 7.2% in September.
London saw the greatest increase in property prices of all the regions, with a rise of 18.4% year-on-year to £460,521.
Yorkshire and the Humber saw the lowest annual rise at 1.4%, and the most significant monthly fall in prices at 2.2% taking September’s average to £119,184.
Campbell Robb, chief executive of housing charity Shelter, said: “Rising house prices are forcing more people into the ‘rent trap’, or leaving them stuck in their childhood bedroom watching their dream of owning a home slip further away.
“Current piecemeal schemes to help first time buyers are just a drop in the ocean. To give young people and families a real chance of a place to call their own, politicians must commit to building more affordable homes.
He added that the annual rise of 7.2% in house prices is huge compared to pay, which has increased by less than 1%.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: ” A cooling of the rapid house price rises seen so far this year is no bad thing and may be due in part to the uncertainty over what will happen to interest rates.
“Amid this landscape, consumers seem to be more reluctant to either move house or look for a new mortgage deal.”
But he said that now is a good time for borrowers to reassess their options, as the lowest deals will disappear well ahead of any base rate rise from the Bank of England.
” On top of this, owing to their current appetite, lenders are engaging in a price war, pushing a vast number of product rates to historic lows,” Duncombe added.