Latest News
01 May 2010
Latest Land Registry figures show property prices fall
Signs of volatility in house price growth emerged yesterday as official figures showed a 0.6 per cent fall in average prices between February and March.
The Land Registry figures, which are a lagging indicator of prices based on completed transactions of second-hand properties, show that the average house price stands at £164,288 a 7.5 per cent higher than a year ago, but down from £164,455 in February.
The data came a day after Nationwide, which bases its figures on mortgage approvals, an earlier indicator of the direction of the market, said that prices rose by 1 per cent in April. Nationwide had recorded price growth of 0.7 per cent in March, up from a 0.8 per cent decline in February. This suggests that the Land Registry figures may show a rise next month.
The Land Registry figures also revealed a 38 per cent rise in the average number of sales per month, from 36,264 in the final quarter of 2008 to 58,775 between October last year and January this year, reflecting the improved sentiment among homemovers.
However, the overall price growth figures mask big disparities between regions and different types of homes. Despite the overall average 0.6 per cent decline, prices continued to grow in March in London, the North East and the East, with prices rising by 1.6 per cent, l.6 per cent and 0.2 per cent respectively, according to the Land Registry.
Growth was lowest in the East Midlands, where prices fell by 2.1 per cent in March, with falls of 1 per cent and 1.2 per cent in the West Midlands and Wales. However, the Land Registry pointed out that annual price growth has been positive for all 10 regions, with London the highest, at 13 per cent and Wales, at 1.1 per cent, the lowest.
By property type, detached homes have performed most strongly over the past 12 months, with growth of 10.5 per cent, compared with 8.1 per cent for semi-detached properties, Despite the more buoyant figures from Nationwide, economists remained dubious about the sustain- ability of recovery. It could receive its first setback in the event of a hung parliament, which might make homeowners more uncertain, according to property experts.