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UK House Price Index (UK HPI) annual review 2018

A review of the UK House Price Index statistics for 2018 for England, Scotland, Wales and Northern Ireland.

A Forest of Dean village with the river Severn in the foreground

Image credit: Ashley Haigh/Shutterstock.com

House price growth weakest since 2013

In 2018 the UK saw the slowest annual growth in house prices since 2013. While annual growth in Scotland, Wales and Northern Ireland all strengthened in 2018 compared with 2017, England experienced a slowdown.

Annual house price growth (%), countries of the UK, 2013 to 2018

  United Kingdom England Scotland Wales Northern Ireland
2013 2.6 2.9 0.4 0.4 -2.8
2014 8.0 8.3 4.7 5.0 7.7
2015 6.0 6.8 4.0 2.8 7.3
2016 7.0 7.7 1.4 4.2 6.5
2017 4.5 4.8 2.9 4.3 3.8
2018 3.3 3.0 4.6 4.8 4.6

The North and the Midlands experienced a slight slowdown between 2017 and 2018, but this weakening growth was more evident in the South and East of England with house prices in London falling over the year in 2018.

Annual house price growth (%), by English region, 2017 and 2018

Bar graph comparing property prices in the English regions in 2017 and 2018.

A similar picture is observed when looking at the local authority level. Strong annual growth in the Forest of Dean, Newport and Torfaen is likely linked to the abolition of the Severn Bridge tolls, making it more affordable for those who work in Bristol to live on the opposite side of the River Severn. In Scotland, strong growth in West Dunbartonshire may be due to the area’s direct trains to both Glasgow and Edinburgh.

Top 5 UK local authorities, by annual growth, in 2018

Local authority Average price (£) Annual growth (%)
Forest of Dean 235,833 11.0
Newport 175,447 10.5
Na h-Eileanan Siar 107,787 9.5
Torfaen 141,055 9.4
West Dunbartonshire 106,795 9.4

London boroughs dominate the areas where prices have fallen over the year. The Bank of England November inflation report highlights that the slowdown in the London market since mid-2016 is probably due to the area being disproportionately affected by regulatory and tax changes, and also by lower net migration from the European Union.

Bottom 5 UK local authorities, by annual growth, in 2018

Local authority Average price (£) Annual growth (%)
City of London 787,027 -7.1
Hammersmith and Fulham 728,072 -3.8
City of Aberdeen 159,243 -3.5
Wandsworth 597,641 -3.3
Tower Hamlets 445,004 -3.1

Note: The figures in this article are annual estimate and will therefore show different annual growth rates and average prices to our monthly statistics.

Published 14 February 2019