House price growth lowest in five years

Annual house price growth has slowed to a five-year low, according to official figures.

Prices were 3.2% higher in August than the year before - the lowest rate since August 2013 and down from 3.4% in July.

In London, the worst-performing region, prices fell by 0.2%, according to the figures from the Office for National Statistics (ONS) and Land Registry.

However the average home price in the capital, at £486,000, remains much higher than that for the whole of the UK, where it is £233,000.

The report said: "While the annual growth rates of the Midlands and the north of England have remained broadly stable over the past two years, the south and east of England has witnesses a sustained slowdown."

The figures come on the same day as a profit warning from housebuilder Crest Nicholson, which cautioned that buyers were being deterred because of Brexit uncertainties.

Jonathan Harris, director of mortgage broker Anderson Harris, said: "The housing market thrives on confidence and there is just too much uncertainty around.

"Transaction numbers are low as buyers hesitate and take a 'wait and see' attitude unless they really have to move."