House prices up 5.6% for year in England and Wales, but volumes fall

House prices continued to rise into November with prices up 0.4% since October 2015, and 5.6% since November 2014. The rise takes the average house price to £186,325.

The information from Land Registry also shows that despite growth in prices, volumes have fallen with the latest data for September showing a decrease of 8% year on year. In total, 72,397 sales were completed in September 2015 compared with 78,877 in in September 2014.

London experienced the greatest increase in its average property value over the last 12 months with a movement of 11.2%. The capital also experienced the greatest monthly growth with an increase of 1.6%.

The lowest annual price growth was in Yorkshire and The Humber and the North East with increases of 1.3%. Yorkshire and The Humber also saw the most significant monthly price fall with a decrease of 0.9%.

Richard Sexton, Director of chartered surveyor e.surv said: “In the face of quickening house price rises, a healthy lending environment can only do so much.

“Mortgage lending is strengthening at a steady and healthy pace – vital for a sustainable future. So to make a dent in the housing challenge, buyers need more homes and more help from schemes like Help to Buy.

“Cooler prices in the North East and Yorkshire & Humber mean these regions have the potential to become havens for first-timers. This shift is already taking place.

“Yorkshire saw the highest proportion of small-deposit lending in England and Wales in November – 27% of all house purchase approvals. Many believe this figure will continue to climb and that the regional property market will enjoy a real boost in 2016.”

Today's Conveyancer