The average house price fell between November and December 2015 according to the Office for National Statistics.
Seasonally adjusted figures indicate the average price fell by 0.2%. The average property increased in value by 6.37% in the twelve months to December, compared with 7.7% for the twelve months until November.
The overall average masks significant regional disparity, with prices in the east, London and South-east rising 9.7%, 9.4% and 8.8% respectively.
On the other hand excluding London and the South-East the average price rise is 5.1%. Prices in the North-East have risen by 0.9%. The north-east is the only English region where the average price is yet to surpass it’s pre-2008 peak. Prices in Wales have risen beyond their pre-crash peak whilst Scotland is still 1.7% below. Northern Ireland’s prices are 44.6% behind their August 2007 peak.
Richard Sexton, director of chartered surveyor e.surv said: “There seems to be something of a mismatch within the UK housing market at the minute. Mortgage lending remains healthy, reaching its highest peak in nine years in January. A buy-to-let rush to beat April’s stamp duty changes, is part of this story, spurring a notable lending lift.
“Buyer’s prospects appear healthy too. With low inflation, rising employment and wages boosting savings potential, home movers should have more options in the housing stakes and be in a better position to pick and choose. But while lending and personal finances aren’t holding aspiring home owners back – rising prices certainly are.
“For these price rises to be fully tackled, supply problems need to be confronted. And crucially, more people need to be encouraged to move. Stamp duty costs, lack of stock and higher prices are deterrents to would be purchasers. As result, people are widening their search areas, and seeking out new potential locations – leading to increased popularity in the East and South East. The appeal of these areas will only grow as those locked out of London look elsewhere.”
