Land Registry reports mixed growth in house prices

Land Registry reports mixed growth in house prices

  • Land Registry reports total increase in prices of 5.6% on twelve months ago with the North East seeing strongest month-to-month growth.
  • The price of an average property in Greater London has passed half a million pounds.
  • The average price of a property in England and Wales is now £186,350

The average price for a property sold in Greater London has tipped over half a million pounds, according to records published for the month of October from Land Registry.

Prices are now 10.6% higher across the capital than they were twelve months ago, and 1.8% higher than in September 2015.

But in contrast to HMRC’s statistics published earlier this week, Land Registry have reported a fall in the number of transactions on last year, with an average of 77,046 transactions in England and Wales between May and August 2015 compared with 82,748 for the same period in 2014, a drop of 6.8%

The number of repossessions has also continued to fall, with the latest statistics covering August showing 376 occurred, a 54% drop on August 2014.

The average house price across England and Wales has also risen, up 0.4% on last month and 5.6% on twelve months ago at £186,350.

Regionally the strongest month to month growth was in the North East of England with a 1.9% change ahead of London’s 1.8%, nudging the average price over £100,000 to 100,393. On the other hand, neighbouring Yorkshire and the Humber saw prices fall by 1.8%.

Towns and authorities surrounding London have also seen prices rise significantly in the past twelve months, with Luton, Slough and Reading seeing growth of 14.4%, 14.3% and 14.6% respectively.

Amongst metropolitan districts, Knowsley in Merseyside saw the largest growth in prices in the past 12 months, up 8.6% with prices in Walsall in the West Midlands up 1.6% month to month. Correspondingly Gateshead in Tyneside saw the greatest fall in prices over 12 months at with a drop of 2.6% and Barnsley in South Yorkshire seeing prices drop by 1.9% month to month.

On prices, the statistics revealed that despite increasing average prices, the number of homes sold at over a million pounds has decreased in the past twelve months, from 1,473 in August 2014 to 1,280 in August 2015. The only price brackets seeing growth in volume were the £250,000 to £300,000 bracket (16% growth) and the £500,000 to £600,00 bracket (12%).

Richard Sexton, Director of chartered surveyors e.surv said:  “House prices are showing no signs of cooling down as we approach the winter months. First-time buyers have felt the chill for far too long, side-lined by developers, housing associations, and the government.

“If they are to see real progress, they need much more help to get on the property ladder – the upcoming Help to Buy ISA is a starting point.

“Yorkshire and the Humber’s reputation as a first-time buyer haven is increasing. But for those looking to buy their first home in London or the South, relocating to a different part of the country shouldn’t be their only option.

“But lenders are increasingly willing to give first-timers a chance and mortgage lending is on the up. Westminster may also appear to be responding to the struggles of first-time buyers, but it could be a long game.”

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