House prices in the UK grew more slowly in 2017 compared with 2016, up 48% compared with a 7% increase in the previous years, according to an annual review of the data.
On a calendar year basis, that is the lowest rise since 2013 and while house price growth slowed in 2017, sales volumes were also hit, remaining flat overall, the Land Registry review shows.
The slowdown at the national level, however, does hide a wide variation in growth rates between regions and countries. For example, while for some the change between 2016 and 2017 is relatively small, by comparison, the annual growth in the south of England nearly halved from 9.5% in 2016 to 5.1% in 2017.
While the Southern regions of England may have started to experience slower house price growth during 2017, there remains a large difference in terms of average house price levels across different regions. The average house price in the North East in December 2017 was £131,000 compared with £484,000 in London.
The slowdown in the south of England is most evident in London. Historically, house price growth in London has consistently been above that of the UK. However, since March 2016 there has been a sharp slowdown in the London house price annual growth rate which has continued to slow through 2017.
For the whole of 2017 the UK house price annual growth rate has exceeded that of London. While London house prices are now increasing at a much slower rate than seen historically it still remains by far the most expensive region of the UK.
Indeed, the average London house price in December 2017 was £484,000, more than double that of the UK average house price of £227,000.
The local area showing the largest annual growth in 2017 was Tendring, a district in North East Essex where prices increased by 11.8%. The report says that this increase may be due to buyers relocating to the coast following the sale of more expensive properties elsewhere.
The lowest annual growth was recorded in Aberdeen where prices fell by 6.1%, which, the report suggests could be due to the impact of falling oil prices on the local economy.
