The latest UK house price index shows that the average UK house price is up 0.7% annually and 0.5% month to month, the is the lowest annual growth rate for the UK for seven years.
The figures are the lowest since September 2012 when house prices increased by just 0.4%.
However, the index also found that the average new build house price has increased by 2% annually, compared to an increase of just 1.2% for existing properties.
House price growth was strongest in Wales where prices increased by 4.2% in the year to July 2019, down slightly from 4.3% in the year to June 2019. The lowest annual growth was in the North East, where prices fell by 2.9% over the year to July 2019, followed by the South East where prices fell by 2.0% over the year.
Commenting, director of Benham and Reeves, Marc von Grundherr, said: “Yet more reason to speculate on the downfall of the once impenetrable UK property market as price growth slumps to a seven-year low, predictably driven by sharp drops across London and the South East.
“However, there is a seasonality at play and this can’t be discounted despite wider market conditions and although we edge closer to political chaos by the day, the price of property continues to creep up regardless.”
He added: “The market may be in a comatose state at present, reliant on the affordability of mortgage rates and the aspirations of first-time buyers, but we’ve seen its rate of recovery before and there’s no doubt that we will soon see it again. In the long-term, the market will maintain good health and this current lethargy will soon be forgotten.”