November sees month-on-month price rise
New data has shown that November saw an uplift in prices following a subdued few months.
According to the house price index released by Your Move, the average home value in England and Wales grew by 0.3% last month or £818 in monetary terms.
On an annual basis, however, growth in prices continue to soften, with 0.9% being the weakest figure since April 2012. However, following the slowdown which began in November, the month-on-month rise could indicate the start of a recovery.
Regionally speaking, the market is being dragged down to a degree by London and the South East; elsewhere, annual price growth is actually at 3.3%.
As well as the extent of the growth, the report also highlighted the rate at which prices has grown, drawing attention to the consistent downward trend observed since June.
“The return of monthly growth has come just in time to save the market from recording an annual decline in prices. Nevertheless, the rate of growth in November at 0.9% continues the consistent downward trend begun in June. Only a year ago, annual price growth was 6.3%.
“Despite the turnaround last month, the monthly falls since March also mean average prices remain more than £5,000 lower than their peak earlier this year of £306,063.”
However, the report did go on to acknowledge the impact which London’s performance had had on the figures, as well as the stamp duty changes introduced last month which could cause market activity to increase.
“There are some encouraging signs, though. First, monthly changes finally seem to be on an upward trend. Second, the relative underperformance of London, which has done much to weaken the national figures, appears to be easing. Finally, buyers in the coming months will benefit from the key budget announcements of an exemption from stamp duty for first-time buyers on homes up £300,000 and more money for the Help to Buy scheme.”