November House Price Index statistics released

November’s Land Registry HPI data shows a negative monthly house price change of -0.6 per cent. This is the third consecutive month in which the figure has been below zero. This brings the average house price in England and Wales to £164,773. The annual house price growth rate has continued to decline for the sixth month in a row, with a movement of 2.2 per cent. This is the smallest growth seen in 12 months.  Sales volumes averaged 60,979 per month from June to September 2010. By comparison, during the same months last year, the figure stood at 58,772.
Key regional observations
Seven regions in England and Wales experienced increases in their average property values over the last 12 months with London having the highest annual price change at 6.8%  The region with the greatest annual price fall is Wales with a movement of -3.3%.
Paul Hunt, managing director of Phoebus Software said:
“Another dip for house prices indicates that lender confidence remains shaky. They are seriously concerned about the impact of higher taxes and lower public spending in the New Year. Lenders are therefore being pre-emptively cautious about the ability of borrowers to pay back loans during the coming months. Nevertheless, the market is in better shape than in 2009. Average prices and sales volumes are up year on year and the pace at which prices are dropping hardly represents a house price crash. At the moment, it is the mortgage drought that is causing prices to fall, not a shortage of buyers seeking finance. Although there are some very strong headwinds facing the market in 2011, price growth could return if borrowers’ finances hold up and lenders respond by loosening their criteria.”
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