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Official: House price growth slumps to five-year low

Christina Hoghton
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Christina Hoghton

The highest growth was seen in the East Midlands, while London saw average prices fall

Average house prices in the UK rose 3% in the year to May 2018, according to figures from the Office for National Statistics.

This is the lowest annual rate of growth since August 2013, when it was also 3%.

The average UK house price was £226,000 in May 2018, £6,000 higher than in May 2017 and unchanged from April.

Midlands engine drives the market

The East Midlands showed the highest annual growth, with prices rocketing 6.3% in the year to May 2018. This was followed by the West Midlands (5.0%).

London prices fell by 0.4% on the year, to £479,000, which remains the highest average house price in the UK.

The South East is second highest, with prices averaging £322,000 and the East of England comes third, with property prices of an average £289,000.

The lowest average price continues to be in the North East at £129,000, which experienced the second lowest annual growth at 1.9%, after London.

Nick Leeming, chairman of Jackson-Stops, said: “In May it was full steam ahead for house price growth in the East and West Midlands, with average prices up by 6.3% and 5% respectively year-on-year.

“Despite the rate of annual growth in the UK continuing to decline to the lowest rate we have seen since August 2013, it is positive to see confidence levels and economic activity remaining high in these locations.

“London however continues to plateau as political and economic uncertainties coupled with stamp duty charges take their toll.”