Property transactions in England fell by 11% year-on-year
The most up-to-date HM Land Registry figures available show that property transactions in England fell by 11% year-on-year.
Over the same period in London, property sales dropped by 20%, while in Wales, transactions rose by 1.4%.
However, house prices in the UK grew by 5% in the year leading up to August 2017. That’s according to the latest UK House Price Index (HPI). The data shows that the average property value in the UK is now £225,956. There was also a 0.5% rise from the previous month.
The upward trend in prices is predicted to continue due to a shortage in the housing market and record employment rates. However, the rise in property inflation comes as many in the sector report that the property market, and in particular the number of transactions, is slowing down.
Overall, a definite North/South divide has emerged, with growth driven by Northern regions. Commenting on this, Alex Gosling, Chief Executive of online estate agents HouseSimple.com said: “Annual price growth has only ticked up slightly, but it’s noticeable that on a regional level there are pockets of the country which are experiencing mini property booms.”
Headline figures from England & Wales show that:
- England shows an annual price increase of 5.3% and a monthly increase of 0.7%. The average property value in England is now £243,520
- Wales shows an annual price increase of 3.4% and a monthly decrease of 0.1%. The average property value in Wales is now £150,258
- London saw the lowest annual price growth at 2.6% and a monthly price fall of 1.0%. The average property value in London is now £484,362. This is the ninth consecutive month where the growth in London house prices has remained below the UK average
- The North West experienced the greatest increase over the last 12 months at 6.5% as well as the greatest monthly price growth at 2.3%
- The number of seasonally adjusted transactions on properties with a value of £40,000 or greater increased by 6.6% year-on-year. However, this number decreased by 0.5% over the previous month.
Owen Woodley, Managing Director at Post Office Money, said: “A slowdown in average house price growth is likely to be welcomed by first-time buyers (FTBs) who continue to face an uphill battle to get their foot on the ladder. The statistics show house prices in the North West have increased by 6.5% over the last 12 months, as buyers choose to move to metropolitan cities such as Liverpool and Manchester. However, it’s good news for FTBs who want to move these popular cities, as despite house price growth, 87% and 84% of properties in those areas remain affordable to FTBs.”