London property prices slip for the second month in a row

The average UK property value has increased by 5.4% in the last year, according to the latest UK HPI – but London’s average value has been sliding since July

UK house prices increased by 5.4% in the year to September (up from +4.8% in August), according to the latest HPI from the Land Registry and ONS, after a 0.4% rise in a month. That takes the average property value in the UK to £226,367 (£11,000 higher than in September 2016, and £1,000 higher than last month).

Annual house price rates of change, UK all dwellings from January 2006 to September 2017

Average UK house price, January 2005 to September 2017

+5.4%

the annual price change for a property in the UK

London – by far the most expensive region – is still dragging the inflation averages down, racking up just 2.5% annual price growth, compared to +5.7% across the rest of England. The capital and Scotland are the only two UK regions to post negative price growth in the latest month’s data (-0.2% and -1.3% respectively).

It’s the second consecutive monthly price drop in London, from a peak average value of £490,000 in July 2017, to £485,000 in August – and now down a smidge more to £484,000 in September 2017 (the latest UK HPI data).

The North West, South West and East Midlands have seen the highest property inflation over the last year.

Country and government office region Price Monthly change Annual change
England £243,945 0.6% 5.7%
Northern Ireland (Quarter 3 – 2017) £132,169 3.0% 6.0%
Scotland £144,924 -1.3% 3.1%
Wales £152,661 0.6% 5.3%
East Midlands £184,399 0.7% 6.4%
East of England £289,301 0.3% 5.9%
London £483,568 -0.2% 2.5%
North East £130,271 0.5% 4.4%
North West £160,951 2.1% 7.3%
South East £324,465 0.3% 5.5%
South West £252,737 0.5% 6.6%
West Midlands £189,038 0.4% 5.7%
Yorkshire and The Humber £158,884 1.0% 5.6%

The local authority showing the largest annual growth in the year to September 2017 was Hinckley and Bosworth, where prices increased by 15.9% to stand at £215,000. The lowest annual growth was recorded in Halton, where prices fell by 5.2% to stand at £127,000.

In September 2017, the most expensive borough to live in was Kensington & Chelsea, where the cost of an average house was £1.2m. In contrast, the cheapest area to purchase a property was Blaenau Gwent, where an average house cost £85,000.