This follows a 10-month steady decline in house price inflation since May’s peak of 2%, according to hometrack.
The slowdown has been particularly marked in London and in the South East, where price falls have been widespread. The highest price falls were recorded in Central London & City (–0.4%), Berkshire (-0.4%), Wiltshire (-0.3%) and Surrey (-0.3%). Seventeen counties reported price falls, while fourteen reported no price changes. The highest price rises occurred in Cumbria (0.8%), East Riding of Yorkshire (0.4%), Mid Wales (0.3%), North Lincolnshire (0.3%) and Dorset (0.2%).
The average house price of the ten counties with the highest price rises is £101,400. The average house price of the ten counties with the highest price falls is £228,860. The average house price for the country as a whole is £135,500.
John Wriglesworth, hometrack’s housing economist, commented: “House price stagnation looks set to continue, led by a marked slowdown in activity in London and in the South East. Despite low interest rates, high employment and growing income, the heat has definitely left the market. Prospective home hunters are holding back from buying, not least due to worries and insecurity over the consequences of the war with Iraq. Fear dissuades people from moving and they stay put.”
