According to the latest land registry data, the average price of a new build property was £287,118 in August 2017, up just 0.5% on the previous month and 11.7% on the previous year.
UK House prices grew by 5% in the year to August 2017, experiencing a 0.5 percentage point increase from the previous month.
Looking closer at regional levels of the UK, the largest annual growth was in the North West at 6.5%. This was followed by the South West, East of England and the East Midlands; all of which had a growth rate of 6.4% in the year to August 2017. The lowest annual growth was in London, where prices increased by 2.6% over the year. This is the 9th consecutive month where the growth in London house prices has remained below the UK average.
In June 2017, the number of property transactions completed in the UK decreased by 6.7% when compared to June 2016. Compared to May 2017, the number of property transactions completed in the UK increased by 10.5%.
Bjorn Howard, group CEO of Aster Group, said, “The continuing price rise will be a concern for those people who are striving to get on the housing ladder. However, we’re seeing the rate of increase slow down in many parts of the country, suggesting that appetite to buy is waning as too many people are now simply priced out of the market.
“Creating a more stable market hinges on offering choice as well as volume so that we cater for the range of housing needs not currently being fully addressed. A vital part of this is greater provision of alternatives to the traditional mortgage is shared ownership, which makes owning a home accessible for more people.”
In terms of housing demand the Royal Institution of Chartered Surveyors’ (RICS) residential market survey for August 2017 reported that headline price expectations remain subdued in the near term. However, at the 12-month horizon, prime central London remains the only area in which prices expectations are negative. In terms of demand, there was little change in buyer enquiries during August, continuing a streak of flat or modestly negative readings into a ninth consecutive month.
On the supply side, RICS reported that the new sales instructions net balance was at -1% for August 2017, compared with -11% in July 2017; this was the least negative reading since February 2016. RICS also reported that the new sales instructions net balance has turned progressively less negative in each of the last three months.