UK house price inflation slows as London sees negative growth

(Sharecast News) - UK house price inflation eased slightly in August, with house prices in London falling year-on-year for the first time in 13 months, according to data out on Wednesday from the Office for National Statistics. The average house price across the UK increased to £273,000 in the 12 months to August, up 3.0% over the same period a year earlier, with growth slowing from 3.2% over the year to July and 3.8% over the year to June.

Annual price inflation eased across all major regions in August, with the exception of the East and West Midlands, which saw a slight uptick in year-on-year growth, the ONS reported.

However, in London, prices were 0.3% lower than they were last year at £566,000, following a 1.3% year-on-year in July, with the capital the only region to record negative growth. This was the first month of annual deflation in London house prices since July 2024. Prices in London hit a three-year high of £570,000 in April.

Average house prices across England rose 2.9% year-on-year overall to £296,000, increased 2.0% to £211,000 in Wales, and were up 4.0% to £194,000 in Scotland.

Rental price inflation also slowed in September, with average monthly rents across the UK rising 5.5% year-on-year to £1,354, down from 5.7% growth in in August.