August Market Trend Data from Land Registry
The August data shows an annual price increase of 4.2% which takes the average property value in England and Wales to £184,682. Monthly house prices up 0.5% since July 2015.
The regional data indicates that:
- The region with the most significant annual price increase is the East with a movement of 8.4%
- London experienced the greatest monthly rise with a movement of 1.7%
- The North West saw the lowest annual price increase of 0.2%
- The North West also saw the most significant monthly price decrease with a fall of 1.4%
Sales and repossessions during June 2015, the most up-to-date figures available, show that:â€‹
- the number of completed house sales in England & Wales decreased by 13% to 70,404 compared with 80,823 in June 2014
- the number of properties sold in England and Wales for over £1 million decreased by 17% to 1,031 from 1,237 a year earlier
- repossessions in England and Wales decreased by 43% to 498 compared with 868 in June 2014
- the region with the greatest fall in the number of repossession sales was London.
Access the full August report https://www.gov.uk/government/statistical-data-sets/house-price-index-statistical-report
The Price Paid Data includes details of over 78,750 residential property sales in England and Wales lodged for registration in August 2015. The most expensive sale in August 2015 was in London SW1 (£15 million). The cheapest sale in August 2015 was in Liverpool (£15,000).
Access the full dataset https://www.gov.uk/government/collections/price-paid-data
Andy Knee, Chief Executive of LMS, comments:
“From a 1.7% month-on-month increase in average house prices from June to July 2015*, the latest land registry data shows a less weighty increase of just 0.5% from July to August, an indication of a seasonal slowdown after a busy summer. The impact of highly volatile global capital markets as well as the announcement of a likely base rate rise in the future can also be felt across the UK housing market.
“London property continues to thrive however, and the imbalance in house prices between various regions means buyers in London and its commuter belt have been dealt the worst hand of all. With a monthly increase of 1.7%, and an annual chance of 6.6%, prices in London and surrounding areas are well-above national averages resulting in a huge gap between other regional cities and the capital; the biggest in twenty years.** While the promise of extra housing is encouraging and targets for building a much-needed step, the government needs a far more stringent and cohesive approach to housing to tackle the problem head on.”
Adrian Gill, Director of Your Move and Reeds Rains estate agents, comments:
“It’s been a summer of rather more sedate house price growth, but the asymmetry between buyers and sellers on the market may usher in a new spell of conditions as we enter autumn. The market in London appears to have got the ball rolling again, as buyers get used to the heavier taxation, and prices in the capital and surrounding regions continue to travel at a must faster pace than up in the North West, North East, and Yorkshire.
“But there’s no north-south divide in sentiment – and demand from buyers is shoring up on all fronts across the country. Sales activity may look slightly subdued on an annual basis, but property sales have actually been picking up speed solidly since the start of the year, and rose 4.4% between May and June. Most importantly, the gates are firmly propped open at the bottom of the market, and our own research shows this has been the strongest summer for first-time buyer sales since 2007. With an interest rate rise largely speculated to happen next year, the race will be on for many looking to move up the property ladder before borrowing becomes more expensive.”
Eddie Goldsmith, Chairman of the Conveyancing Association, comments:
“2015 has been an unusual year and the Land Registry’s latest figures are indicative of this. With the General Election disrupting the peak we traditionally experience in the spring and the Rugby World Cup disrupting the second annual peak we usually see in the autumn, the market is showing every indication of having plateaued. This is certainly no bad thing as a more tempered market may suggest more stable and longer term growth. We also need to take into account the significant drop in the supply of homes coming onto the market which seems to be reflected in these figures.
“Many prospective sellers are likely to have been advised to wait until October to put their property on sale, when we may see a small pick-up in activity in the run up to Christmas giving us a truer indication of exactly where the market is. This will also give us a clearer picture of what we can expect to see next year, as 2016 fast approaches.
“What is extremely encouraging to see is the 43% decrease in repossessions since last year, reflecting the greater confidence in the economy, growth in wages and fall in prices, as well as the stricter mortgage rules, ensuring buyers can definitely afford in the longer term.”
*Land Registry data July, http://www.todaysconveyancer.co.ukjuly-market-trend-data-from-land-registry-cms-15466
**Hometrack UK cities House Price Index https://www.hometrack.com/uk/insight/uk-cities-house-price-index/august-2015-cities-index/