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London house price growth slows sharply for the month to June

Uncertainty with the EU Referendum has seen London house prices stall increasing by 0.2% for the month to June down from 1.5%, says ONS.

The Office of National Statistics (ONS) report shows a slowdown in house price inflation for London while Northern Ireland and Scotland have benefitted from strong growth.

House price growth for Northern Ireland was 3.8% for the month to June compared to a decrease of 1.0% last month and Scotland has a strong monthly rise of 2.7%.

Although over the last year London has maintained a double digit increase of 12.6% there are signs things are changing.

The London market supported from buy-to-let landlords where sales declined after the new stamp duty tax was introduced in April 2016 and overseas investors are cautious to buy with uncertainty over the Brexit vote.

Growth outside of Greater London

Many areas outside of Greater London continue to see house price growth with East of England higher by 1.3% over a month and 14.3% higher over the year.

Other areas such as Yorkshire and The Humber have bounced back with a monthly rise of 1.2% after a fall the previous month of 0.2% and Wales house price growth is 1.2% compared to 0.9% last month.

For England annual growth is averaging 9.3% and for first time buyers this would mean they would require a larger deposit or higher earnings to purchase their first home.

Average property values and annual change for June 2016 from the ONS are shown below.
Area Annual Changes
Property Values
London 12.6% £472,204
South East 12.3% £309,149
East of England 14.3% £270,029
South West 8.0% £229,383
England 9.3% £226,807
West Midlands 6.4% £174,998
East Midlands 7.9% £171,462
Yorks and the Humber 5.5% £149,706
North West 6.6% £148,320
Wales 4.9% £145,238
Scoltand 4.6% £143,282
North East 6.6% £124,470
Northern Ireland 7.8% £123,241
Across the country the highest rise in prices by type of property is for flats up 9.8% over the year with an average price at £193,758 compared to a terraced home up 8.7% worth £174,495.

Semi-detached homes increased by 8.5% and are now worth £200,789 and a detached home has increased the least at 8.0% although worth the most at £318,945.

Top ten London boroughs

Even though Greater London is slowing, within the capital there is some strong performance in house price growth as first time buyers and home movers look for value in up and coming areas.

The leading boroughs in London all increased by over 18% over the year to May 2016 with Waltham Forest the highest with 22.1% and house price of £418,146.

Average house prices and annual change for June 2016 from the ONS are shown below.
London Borough House Prices
Annual Changes
Newham £355,950 21.4%
Waltham Forest £422,049 20.3%
Croydon £360,845 20.3%
Havering £340,162 19.5%
Bexley £319,307 19.4%
Barking and Dagenham £271,584 19.3%
Redbridge £401,199 19.4%
Haringey £555,638 18.5%
Enfield £386,182 17.5%
Hillingdon £404,502 17.1%
The average price of a London property is £472,204 and the entire top ten other than Haringey are significantly below this level.

For remortgage buyers the rise may allow them to release capital to improve their home such as an extension, new kitchen or bathroom which could increase the value of their home.

Some areas in the capital have decreased over the last year with Hammersmith and Fulham 3.2% or £24,339 lower and Kensington And Chelsea by 6.2% or £80,653 lower.

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