Annual house prices in the UK have grown 0.3% in July 2023, the lowest growth rate since March 2012, e.surv has found.

In its latest House Price Index report, e.surv revealed that the average house price in the UK currently sits at £370,610, a monthly decline of 0.2% compared to June.

Excluding London and the South East, the rest of the UK saw an annual growth rate of 0.2%.

The North East of England remains the region with the most growth, seeing house prices grow by 3.4%. However, it remains the region with the lowest house prices, with the average price sitting at £198,101. This is £26,000 less than average prices in Scotland and £42,000 lower than in Wales.

Wales is the area which has seen the most decline in house prices, falling by 0.6% annually. There was no change to the house price month-on-month, with the average house price in Wales standing at £239,992.

Greater London is currently in third place in the regional growth league, having previously sat at the bottom of the league for 11 consecutive months up until April 2023. The average house price in the capital is currently £700,470.

Director at e.surv, Richard Sexton, said: “Most regions in England continue to register positive price movement, though this has fallen below 1.0% nationally. There are some outliers with Hartlepool in north east registering double-digit price growth in the year. In addition, Greater London has moved from the bottom to higher ranks in the price growth league table. This disparity highlights the regional variations and complexities within the housing market.

“The recent decline in property prices in Wales can be attributed to a confluence of factors. The introduction of council tax premiums for second homes and vacant properties has created a new layer of complexity to the market. This policy shift has potential repercussions for both property prices and buyer behaviour, leading to a dampening effect on demand.

“Transactions for the first half of 2023 are at their lowest level since the financial crisis of 2007-09, reflecting the market's responsiveness to economic changes, particularly rising mortgage rates. In recent weeks, positive signs have emerged as inflation shows signs of easing along, and swap rates have stabilised following a wobble in early July, bringing some assurance to the mortgage market in the second half of the year.”

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