Property prices rise at just 7%
Andrew Oxlade, This is Money
13 June 2005
GOVERNMENT figures today revealed a sharp slowdown in the UK property market with London leading the way. A fall in the price of detached houses in April was largely to blame.
OFFICIAL FIGURES: The price of the average detached home fell more than 3% in a month
The Office of the Deputy Prime Minister (ODPM) said annual house price inflation in April stood at 6.9%, down from 12.6% in March.
The price of the average home fell to £181,832, down 0.8% from £183,346 a month before – although the ODPM warns against a month-on-month comparison of the figures which do not take into account seasonal demand.
The annual rate of house price inflation was lower in all regions, with London recording the most dramatic slowdown. Values in the capital in April stood just 2.7% higher than a year earlier, down from a growth rate of 9.8% in March.
'The fall in UK prices between March and April can be largely attributed to a fall in the price of detached houses,' said the OPDM in a statement. 'Prices for detached houses fell by 3.5% and for flats by 0.4%, with slight increases for other dwelling types [such as semi-detached and terraced homes].'
Among the home countries, property price inflation fell from 12% to 6% in England, from 22% to 15.9% in Wales and from 16.1% to 14.3% in Scotland.
The English regions also saw a sharp slowdown – price growth was strongest in the North-West at 12.9% but it was down from 19.2%. Growth in the North-East was 11.9% compared to 19.4% before. Price inflation was just 4% in the South-East, down from 8.1%.
There was also more good news for those looking to get a foot on the property ladder. Prices for first-time buyers grew at an annual rate of 9.8% compared to 18.3% a month before.
p.s Come on Northwest people keep us up there.