Official property data from the Land Registry indicates that annual property price growth in England and Wales during June took values to a record high.
Figures from the report show that prices grew by 5.4% last month, escalating prices to an average of £181,619. This figure was more than the previous record of £180,983 in November 2007.[1]
Regional results
Regionally, the largest price increase was recorded in London, where house prices were up by 9.2% annually. By month, the largest increase was in the North East, at 3%. In contrast, the lowest annual rise was found in Yorkshire and the Humber, where prices went up by 1.4%, while by month, the region also had the worst result, with values dropping by 0.9%.[1]
In the North East, there was a 3% monthly rise in home values with a 2.4% annual increase, whereas in the North West, prices rose by 0.2% and 3.6% respectively. Wales saw hikes of 1.7% in the month and 2.7% year-on-year.[1]
For the South West, prices rose by 0.8% over the month and by 5,2% over the year, whilst the South East saw 0.4% and 8.4% rises respectively. The price of a home in the region is now £247,375. In London, there was a 1.8% monthly rise, with an annual increase of 9.2%, taking the average price of a home in the capital to £481,820.[1]
The East of England saw prices fall by 0.8% in June but a 7.8% increase on the same period twelve months ago, taking prices here to £203,428. Additionally, the East Midlands saw rises of 0.7% in the month and 5% over the year; meaning prices are currently £134,965. For the West Midlands, prices fell by 0.2% monthly but were up by 2.1% since 2014.[1]
Types
By property type, detached homes have seen an annual increase of 5.4% to stand at £284,478, with semi-detached properties rising by 5% to reach £171,154. Terraced houses saw a similar increase of 5.4% to £137,123 and flats rose in value annually by 5.6% to £174,523.[1]
Homes sold that were valued at more than £1m in England and Wales fell by 22% in the twelve-month period, whereas repossessions also decreased by 48%.[1]
‘Confidence at the bottom of the market is particularly strong and it is the region with the lowest average house price, the North East, that has seen the biggest monthly improvement in prices, as cheaper mortgage finance and government support schemes inject more energy into areas where the recovery needs a careful watch,’ commented Adrian Gill, director of Your Move and Reeds Rains estate agents.[1]
Gill said that while this appears promising, ‘prices will only head north if the supply of new homes coming onto the market dries up.’ He noted that, ‘growth in the construction industry was flat during the second quarter of this year, which should be ringing alarm bells. Buyers’ purchasing power has rarely been stronger, but this golden opportunity will be spoiled if there’s nothing for them to buy.’[1]
Confidence
Peter Rollings, chief executive officer of Marsh & Parsons feels the fact the majority of regions are posting monthly rises in property value shows that confidence is coming back to the market following election uncertainty. ‘London continues to be at the forefront of this and prime postcodes have enjoyed quarterly upticks after an uncertain period at the beginning of the year,’ Rollings observed.[1]
[1] http://www.propertywire.com/news/europe/england-wales-home-prices-2015072810798.html