Property prices up in the UK in July and August, latest figures show
06-09-2012
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The July Market Trend Data report from the Land Registry shows that house prices in England and Wales increased by 0.8% in July compared with the previous month to an average of £162,214.
Meanwhile the latest index from the Nationwide Building Society shows that the price of a typical UK house increased by 1.3% in August to £164,729 and that means prices are just 0.7% lower than a year ago.
The region in England and Wales which experienced the highest increase in its average property value over the last 12 months is London with a movement of 6.5%, according to the Land Registry's flagship House Price Index. London also experienced the greatest monthly rise with an increase of 2.7%.
The North West experienced the greatest annual price fall with a decrease of 3.9% and the North East saw the most significant monthly price fall with a decrease of 2.1%.
The most up to date figures available show that during May 2012, the number of completed house sales in England and Wales increased by 2% to 50,083 compared with 48,974 in May 2011.
The number of properties sold in England and Wales for over £1 million in May 2012 increased by 107% to 562 from 271 in May 2011.
Robert Gardner, Nationwide's chief economist, said that 1.3% price rise in August was the largest monthly increase since January 2010, reversing the declines recorded in the previous two months.
‘Given the difficult economic backdrop, the extent of the rebound in August is a little surprising. However, we should never read too much into one month's data, especially since monthly price changes have been impacted by a number of one- ff factors this year, such as the ending of the stamp duty holiday for first time buyers. These are factors that cannot be controlled by the usual process of seasonal adjustment,’ he explained.
‘Nevertheless, the fact that the annual pace of house price decline moderated to 0.7% in August from -2.6% the previous month provides evidence that conditions remain fairly stable. This may be explained by the surprising resilience evident in the UK labour market, with further increases in employment in recent months, even though the UK economy has remained in recession,’ he added.
David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, believes that the housing market will remain subdued as the economy continues in recession and the eurozone crisis remains unresolved.
‘As a result, mortgages are still very hard to get hold of and it’s lending that is holding the majority of buyers back from making a purchase. Prices are being supported by investors with cash especially those flocking to prime parts of the capital, but that’s not helping the rest of the UK,’ he said.
‘While property remains a good investment, international buyers continue to drive growth in London in the absence of first time buyers with big enough deposits across the whole country,’ he added.
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