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London property slump puts brake on UK house price growth

15 August 2018

UK house price growth slowed in June to the lowest annual rate in five years, driven by falling prices in London, according to official figures.

Average house prices across the country increased 3% in the year to June, down from a 3.5% gain in May, the lowest annual rate since August 2013, the Office for National Statistics (ONS) said. The average price of a UK home was £228,000 – about £6,000 higher than in June 2017 and £1,000 higher than in May.

However, the slowdown is hitting London hardest. House prices in the capital fell at the fastest annual rate since the depths of the financial crisis, while rents dropped at the fastest rate in eight years, said the ONS.

The ONS said the UK-wide dip in growth was driven mainly by a slowdown in the south and east of England. London recorded the weakest reading across the country, with prices dropping 0.7% over the year to June, the lowest rate since September 2009, and down 0.2% in May. It is the fifth month London house prices have fallen this year.

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