London House Price Drag Prompts U.K.'s Weakest Gains Since 2013By
Home prices in capital rose 0.8% last quarter, Halifax says
Cautious buyers are contributing to a slowdown across the U.K.
Weakness in London house prices contributed to the U.K.’s slowest annual increase since 2013 last quarter.
Home prices in the capital grew 0.8 percent, compared to 13.7 percent at the same period in 2016, lender Halifax and IHS Markit said in a report on Wednesday. Nationally they rose 2.4 percent from a year earlier, slowing from their 3.6 percent gain in the first quarter.
The data provides the latest evidence of a “sustained slowdown” in U.K. property price inflation, according to Halifax. It attributes the cooling to affordability constraints, pressures on household finances, greater caution among buyers and the effect of tax changes on buy-to-let properties.
“London’s soft patch has clearly magnified the slowdown in U.K. house price inflation since 2016, but this weaker trend is not exclusive to the capital,” said Tim Moore, a senior economist at IHS Markit. “A generally cooling U.K. housing market appears to have emerged.”
Despite the slowdown, the average London house price climbed to 452,758 pounds ($582,292) last quarter, around double the national level of 222,911 pounds.