Business

House price growth continues to slow in UK

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Growth in UK house prices has continued to slow, but the cost of the average home still increased by 4.7% in the year to May 2017.

Figures from the Office for National Statistics (ONS) show a drop from the 5.3% rise in the year to April.

The average UK house price stood at £221,000 in May, up £10,000 from the same month last year.

The main contribution to the rise in house prices came from England, where prices jumped by 5%.

The average price of a house in England is now £238,000, the ONS said, while a property in Wales costs £150,000 after a 3.8% increase in prices over the past 12 months.

House prices in Scotland rose 3.5% to £143,000, while the average price of a Northern Ireland home stands at £124,000 after a 4.3% rise for the year to May.

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Within England, the smallest price rise in the year to May was seen in the North East, up 1.6%, while London had the second lowest price rise of 3%.

The highest price rise was 7.5% in the East, just ahead of the East Midlands where property values went up by 7.2%.

Richard Snook, senior economist at business services company PwC, said: "The figures are in line with our expectations that growth in 2017 will be around half that of 2016.

"Our main scenario anticipates a softening of the market over the year with house price inflation falling from 7% in 2016 to 3.7% in 2017.

"We expect London to be one of the UK's worst performing regions, achieving price growth of just 2.8% in 2017.

"The key drivers of this slowdown are uncertainty related to Brexit and a softening in the economic outlook."


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