Amid a hike in the standard base rate issued by the Bank of England last week during the monthly meeting of the Monetary Policy Committee, recent data reveals annual house price growth has slowed for areas of the UK housing market. Overall, house price growth has slowed to 3.5%. London and the Southeast have been affected by the decrease in house price growth, whilst the Midlands and the South have experienced the opposite effect.

Overall, house price growth remains on an upward trajectory, yet rates continue to slow down, according to recent data from Carter Jonas. In the twelve months to May of this year, Northampton posted the highest annual average house price growth rate at 6.5%.

Oxford experienced a fall of almost 3% during that period and London saw a fall of almost 7%.

Rates of slow down vary between 1.5% and 3.5%. Comparatively speaking, this paints quite a different story than the four years prior to the year 2017. During that time average annual house price growth fell in the range of 7% to 9%.

After ten years of consistent growth, quite the disparity has surfaced between house price growth and affordability. Buyers must see an equal amount of wage growth relative to house price growth. The result of this not taking place is buyers simply having to move into a different area where affordable housing can be found. Currently, that is the trend after years of increasing house prices with an unequal amount of wage growth.

Rory O’Neill with Carter Jonas commented on the ripple effect taking place as different regions see change in house prices, saying: “After a period of rapid house price growth in London and the South East, a slowdown was always inevitable, and arguably essential, to allow wages to catch-up and buyers to be able to finance their move.”