The latest figures from the Land Registry show that the average house price in England and Wales edged down 0.2 per cent in September 2014 compared to August 2014. Nonetheless, the market has improved significantly from the same time last year, with values up 7.2 per cent to an average of £177,299.
London led the way with an annual price increase of 18.4 per cent, far outstripping the lowest annual price grotwh recorded in Yorkshire & The Humber of 1.4 per cent. Indeed, the average price of property in The City is £460,521 in comparison with the average for England and Wales of £177,299.
The capital, though, is cooling down, with the Registry’s September data showing a monthly price fall of 0.7 per cent. While this is still better than the largest monthly decrease of 2.2 per cent recorded, again, in Yorkshire & The Humber, growth has spread to other parts of the country, as the recovery begins to show signs of balancing out: The East experienced the greatest monthly price rise with a movement of 1.4 per cent.
The number of property transactions has increased over the last year. From April 2013 to July 2013 there was an average of 64,317 sales per month. In the same months a year later, the figure was 75,950.
Peter Rollings, CEO of Marsh & Parsons, comments: “House prices rises are flattening on a monthly basis, as growth relaxes after a rousing first half of the year. But considered as a whole, the UK property market is still on an upward trajectory and prices have seen a considerable uplift in the past year. London is still showing healthy annual growth, and the unparalleled draw of living or investing in what many regards as the world’s greatest city gave the property market here a shortcut in the recovery. As a result, the average price of a Prime London home has risen by £163,973 over the past year.
“But London’s economy thrives on its global standing as an unbeatable destination both to live and to do business and talk of a ‘mansion tax’ and other populist wealth taxes threatens to erode this reputation. A quarter of all Prime London property purchases are made by overseas and foreign nationality buyers, though the vast majority have chosen to live and work here, adding hugely to the strength and vibrancy of the London economy. The uncertainty surrounding these proposals could shake the foundations of London’s property market as the political rhetoric picks up ahead of May’s general election, and we’d enter dangerous territory which could filter down to all sections of the market if these buyers packed up and turned their attentions elsewhere.”
Source: The Movechannel