UK house prices dipped by 0.3 per cent month-on-month in January, but climbed 4.9 per cent on a year ago to an average of £225,620, official figures show.
According to the report released jointly by the Office for National Statistics (ONS) and the Land Registry, the annual growth rate slowed from 5 per cent in December.
Looking ahead, research suggests that the South West is set to lead the UK on house price growth over the next five years, climbing 4.3 per cent by 2022. The West Midlands will follow on 3.8 per cent, while the South East and Northern Ireland are in joint third place with growth of 3.7 per cent. London will see the weakest growth, with a climb of just 1.5 per cent.
Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors (Rics), says: “We have found house prices to be rather volatile over the past few months – up a bit, then down a bit.
“On the one hand, they have been supported by low interest rates and shortage of stock, but on the other, compromised by squeezed affordability and Brexit uncertainty.
“No region reflects this pattern more than London, which is showing again that price rises are lagging behind most of the rest of the country, mainly due to previous overheating and now availability of more stock.
“Successful sellers are the ones who are recognising the new market realities. Property needs to stand out one way or another to gain attention.”
Commenting further, Sarah Beeny, founder of estate agent Tepilo.com, says: “January is often a tough month in the property calendar, so it’s no surprise to see a weak start to the year in terms of house price growth.”
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