As property market sentiment weakens in the UK, house price growth was only 0.6% and the slowest rise since September 2012.
Data from the Office of National Statistics (ONS) shows house prices grow in the UK was 0.6% for the year to February 2019 which is the slowest rate since September 2012 and down from the 1.7% rise for the year last month.
Average property values for the UK are £226,234 and for first time buyers the average of £190,438 has reduced -0.6% for the month which is good news as they would require a lower deposit to get on the property ladder.
The lowest growth was London down -3.8% over the year with an average property value of £459,800 whereas first time buyers prices are down -4.5% and they pay £400,645 for a new home.
For buy-to-let landlords the lower house prices across the country means they need a smaller deposit or mortgage and rental yields after interest payments would increase.
Buyers gain from lower house prices
House prices for the month in the UK were lower by -0.8% reducing £1,824 from £228,058 the previous month.
In London house prices are down -3.8% for the year or lower by -£18,162 from £477,962 for the month of February in 2018, which is a significant saving for a new purchase.
The following table from the ONS shows average house prices and annual change for homeowners to February 2019.
| Region | Average price | Annual change |
|---|---|---|
| Northern Ireland | £136,669 | 5.5% |
| Wales | £159,559 | 4.1% |
| North West | £163,758 | 4.0% |
| West Midlands | £196,152 | 2.9% |
| East Midlands | £190,199 | 1.6% |
| South West | £253,730 | 1.2% |
| East of England | £290,137 | 0.6% |
| England | £242,964 | 0.4% |
| Yorks and the Humber | £155,685 | 0.0% |
| Scotland | £145,762 | -0.2% |
| North East | £145,762 | -0.8% |
| South East | £315,700 | -1.8% |
| London | £459,800 | -3.8% |
For home movers falling house prices gives you more time to raise a deposit as often the gap to your next home increases at a faster rate.
There was strong growth in Wales where house prices were higher by 4.1% in the year to February 2019 followed by the North West which increased by 4.0%.
London boroughs with the biggest falls
Property values continue to fall in England driven by negative growth for flats and maisonettes across London boroughs that account for 30% of all transactions for this property type.
On average house prices for first time buyers were lower by -4.5% for the year or lower by -£18,878 reducing from £419,523 last year.
With a slowing property market and falling prices, it may be easier for remortgage buyers to stay in your existing home if you can and avoid the cost of moving.
The biggest fall in property values over the year is for City of Westminster reducing -19.6% or lower by £218,518 to the current average value of £898,890.
Next was Hackney lower by only -8.7% with average prices of £505,478 followed by Southwark reducing by -6.9% with prices of £479,503.
There are still some boroughs that have rising house prices such as City of London rising by 8.4% with average prices of £848,890 and Merton higher by 5.0% with prices of £520,262.
Rising house prices allows the older equity release mortgage buyer to access the wealth in their property, using this for any purpose such as improve your quality of life or reduce inheritance tax owed by your beneficiaries.
What are your next steps?
Call our LCM mortgage brokers for advice if you are a first time buyer, want to remortgage your existing home for the best mortgage deal, moving home or a buy-to-let investor.
Learn more by using the property value tracker chart, mortgage costs calculator and equity release mortgage calculator. Start with a free mortgage quote or call us and we can take your details.
For equity release buyers our London City Mortgage advisers can recommend lifetime mortgages allowing you to receive cash from your property for home and garden improvements, holidays of a lifetime or gift to a family member.
