"As the housing market continues to let off steam in the face of fragile consumer confidence, the market is struggling to gain momentum. "
Its data shows that the slowdown in UK house price growth over the past two years is driven mainly by a slowdown in the south and east of England. The lowest annual growth was in London, where prices decreased by 0.7% over the year, down from -0.2% in June.
The West Midlands showed the highest annual growth, with prices increasing by 5.8% in the year to June 2018, followed by the East Midlands with growth of 4.1%.
The lowest annual growth was in London, where prices decreased by 0.7% over the year - its lowest annual growth rate since September 2009 when it was negative 3.2%.
The second-lowest annual growth was in the North East, where prices decreased by 0.6% in the year to June 2018.
On a seasonally adjusted basis, average house prices in the UK were unchanged between May 2018 and June 2018, compared with an increase of 0.5% in average prices during the same period a year earlier.
John Goodall, CEO and co-founder of Landbay, commented: “House price growth has dropped down another gear. As the housing market continues to let off steam in the face of fragile consumer confidence, the market is struggling to gain momentum. For most the cost of living remains high, compounded by flat wage growth and a period of high inflation. While the Bank of England’s recent interest rate rise adds further pressure to household finances, we don’t expect the cost of borrowing to alter significantly.”
Jeremy Leaf, north London estate agent and former RICS residential chairman, added: "Although a little out of date, these numbers represent the most comprehensive survey of UK house prices. House price growth outside of London is being supported by a continuing shortage of stock whereas the capital and the southeast can’t hide behind this excuse any longer. Price drops are continuing and reflect a new realism in the market - if you want to sell your property, it needs to stand out and price is the obvious way of doing it.
"Nevertheless, we are seeing more interest in property coming on the market as buyers can only hold off for so long and realistic sellers are recognising the changed market conditions. This is an encouraging sign and hopefully will be reinforced when many of those currently on holiday return to bolster the traditionally busier Autumn market."
