House price growth slows further

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Published: Friday 27th March 2015 by The News Editor

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House prices are increasing less than half as fast as they were last summer, Nationwide Building Society has reported.

At £189,454 on average in March, UK property values are 5.1% higher than a year ago. The annual pace of house price growth has been slowing for seven months in a row, and has reached less than half the rate of growth seen for much of last summer, when the year-on-year increase was in double digits.

Last June, for example, prices were climbing at a rate of 11.8% year on year. On a month-on-month basis, house prices edged up by 0.1% in March, following a 0.1% decrease in February.

Nationwide said that all regions except the North of England have seen a further slowing in the annual pace of house price growth during the first three months of this year.

London remains the strongest-performing region, with average prices up by 12.7% year on year, taking them to £408,780 on average. But the pace of price growth in the capital has slowed sharply compared with the end of 2014, when the pace of annual growth was 17.8%.

Wales remains the weakest area in the UK for annual house price growth. At £139,171 on average, prices in Wales are down by 0.5% year on year. Wales is the only UK nation or region where prices have fallen year on year in the first quarter of 2015.

St Albans in Hertfordshire was named as the UK’s top performing city for house prices over the last year, with average values up by 22% to reach £498,957.

Manchester was named as the weakest performing city, with values down by 1% year on year, taking them to £211,571.

Reading, Oxford, London and Brighton were among the UK’s other top price performers over the last year, while Bradford, Plymouth, Leicester and Cardiff were among the weakest.

In Scotland, house prices have increased by 1.3% year on year, taking them to £140,180 on average, and in Northern Ireland they have increased by 5.7%, pushing them to £121,052 typically.

The North of England has bucked the general trend seen across the UK, seeing the annual pace of price growth accelerate from 4.4% at the end of last year to 4.7% in the first quarter of 2015. The average house price in the North of England is £125,299.

Yorkshire and Humberside was the weakest performing region in England, with prices up by 1.3% over the last year, pushing prices there to £141,647 typically.

Published: Friday 27th March 2015 by The News Editor

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