The average UK house price stood still during November, while £3,000 was lopped off the cost of a typical property in London, according to the latest official figures.
The data from the Office for National Statistics provides fresh evidence that the housing market is cooling, though the annual rate of property price growth is still in double-figures: the figure for the UK slipped back to 10% in November, from 10.4% in October and 12.1% in September.
At £271,000, November’s average UK house price was unchanged on October, and compares with a high of £274,000 in August 2014.
However, the ONS said the average price in London had fallen slightly: from £504,000 in October to £501,000 the following month. The annual rate of house price inflation in the capital is now running at 15.3% – down from 17.2% just a few weeks earlier.
“House prices are no longer at record levels in any region of the UK, with the majority of regions having reached a record level in August 2014,” the ONS said. It added: “The price index for London is now 2.5% below the record level in August 2014.”
Meanwhile, the data showed that the typical price paid by a first-time buyer in November was £208,000 also unchanged on October.
Howard Archer, an economist at IHS Global Insight, said the ONS data was now “moving in line with most other house price data and surveys showing moderation in price growth”. He added that the figures provided “compelling evidence” that London’s housing market was cooling.
He said that, based on the assumption that there would be some pick-up in housing market activity this year, he expected prices to rise by a “solid but unspectacular” 5% in 2015.
Brian Murphy at broker firm Mortgage Advice Bureau said: “This slight slowing of activity will be especially welcomed by first-time buyers.”
He added: “Consumer demand in the housing market is expected to remain strong this year, though a slower rate of growth is likely as uncertainties around the general election and interest rates remain. However, with UK inflation falling to 0.5% today – matching the record low last set in May 2000 – a Bank rate rise may still be some way off. This is more good news for mortgage borrowers, who are already benefiting from historically low pricing.”