Momentum in the UK residential property market continues to slow. According to the latest figures from the government land registry, Land Registry, annual price growth weakened for the fourth consecutive month in August. The official figures highlight an ongoing cooling of the market in the United Kingdom.
The Land Registry House Price Index shows an increase in residential property prices of 0.9 per cent in August compared to the same month of the previous year. This figure marks a noticeable slowdown compared with the previous month: in July, the annual growth rate was still 1.2 per cent. The average price recorded for a residential property stood at 272,611 £ in August.
Consolidation following multi-month downward trend
The latest decline continues the run of more moderate price gains. Four consecutive months of falling growth rates suggest that the phase of strong appreciation has concluded for the time being. The market is increasingly shifting into a consolidation phase, in which price expectations are readjusting.
The Land Registry surveys are based on completed transactions, providing a reliable record of actual market activity. They capture the final registered sales prices and reflect the altered conditions under which buyers and sellers completed transactions in previous months.
Market data at a glance
- —Average property price in August: 272,611 £
- —Annual rate of price increase in August: 0.9 per cent
- —Annual rate of price increase in July: 1.2 per cent
- —Development trend: Slowdown in growth for the fourth consecutive month
The drop in annual growth to below one per cent shows that scope for price increases in the United Kingdom currently remains limited. The recorded average values paint a picture of a market environment shaped by prudent conduct and realistic valuations.
