This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
UK house price growth continues to slow down, with August data from the Office of National Statistics (ONS) confirming that the housing market has hit a five-year low.
On average house prices have gone up by 3.2% in the year to August, down from 3.4% in the year to July, according to UK House Price Index data – adding to the deceleration the UK housing market has witnessed over the last two years. The average property in the UK valued at £232,797.
House prices have grown fastest in the East Midlands increasing by as much as 6.5% in the year to August 2018, closely followed by the West Midlands which saw an increase of 5.1% over the same period.
In London, house prices fell by 0.2% with annual growth in the city flat for the last six months.
On Tuesday, British homebuilder Bellway announced strong full-year 2018 results with its revenues rising 15.6% to £2.96 billion, with the company proudly announcing that it had broken 10,000 new home sales for the first time.
But, despite a landmark year for the homebuilder, the company admitted that Brexit posed a major challenge in the year ahead, warning investors in its annual results that Britain’s exit could hurt consumer confidence in the housing market and negatively impact its spring sales.