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UK house prices rise fastest in a year as London rebounds
[LONDON] UK house prices rose at their fastest pace in a year last month as high-value London property showed signs of a rebound.
The 0.6 per cent increase in values lifted the average to £297,832 (S$511, 830), Acadata and LSL said in a report on Monday. Nevertheless, annual price growth softened for a 12th month, to 2.4 per cent, the lowest since 2013.
According to regional data for January, London home prices gained 0.4 per cent from December, snapping a two-month decline, and gains in the high-value areas of the capital contributed to the increase in February.
The city's property market "still faces challenges," Acadata said, noting that the annual gain in prices was the weakest in almost five years and transactions have slumped 22 per cent over the past three months compared with a year earlier.
Over 2016, the UK capital was one of the worst performers among 10 regions analyzed, partly due to weakness in prime locations because of Brexit and tax changes.
Lack of affordability has also contributed to the slowdown, with data by Lloyds Bank last month showing the average home in the capital cost more than 10 times annual earnings.