Regional data has indicated that London saw the largest increase in its average property value over the last 12 months with a movement of 13.1%, while the North East experienced the greatest monthly rise with a movement of 6.2%.
The North West saw the lowest annual price growth with a movement of 0.7% and also saw the largest monthly price fall of 1.7%.
Sales and repossessions during December 2014, the most up-to-date figures available, show that the number of completed house sales in England & Wales decreased by 11% to 70,470 compared with 79,569 in December 2013, whiel the number of properties sold for over £1 million decreased by 4% to 929 from 967 a year earlier.
Repossessions in England and Wales decreased by 38% to 654 compared with 1,062 in December 2013.
Adrian Gill, director of Your Move and Reeds Rains estate agents, comments: "House price growth isn't flexing quite the same muscle as it was a few months ago, but the property market is only just getting into shape for 2015 and our research shows it’s gaining momentum as the weather improves. Overall energy levels appear mixed across the different regions, however buyers are still moving quickly to snap up the best deals on mortgages and prices.
But we're on a road to nowhere unless housebuilding speeds up in tandem with demand. There needs to be a steady flow of new homes to buy to avoid a build-up of pressure at the entry level of the market, and prevent prices accelerating too quickly. The new Help to Buy ISA and stamp duty cuts have enhanced the prospects and confidence of thousands of aspiring buyers at the lower rungs of the ladder. But the sticking point is that there aren’t enough homes available for them to buy, added to which the government has further roused demand with their shake-up of pensions.
First-time buyers will increasingly find themselves up against budding landlords, as investing in buy-to-let becomes a popular alternative to annuities. Ultimately, the winners will be those who act decisively now to take advantage of these prime conditions – as those who delay will end up either paying more or finding that there is nothing left for them to buy.”
Peter Rollings, CEO of Marsh & Parsons, comments: “You can still hear the pitter-patter of house price growth advancing across the country, and while the footsteps are slightly fainter, you can see that a lot of distance has been covered in the past year. Buyers are finding it easier to keep pace with steadier house price growth, and some of the most daunting obstacles to buying have been lowered. The Help to Buy ISA and reduced stamp duty costs will make it faster for aspiring homeowners to save enough to get onto the ladder, and low mortgage rates are also accelerating demand.
London, the lynchpin at the heart of the country’s property growth, is where the most acute supply and demand imbalances have collided and this has lifted price rises in the capital to heights unfathomable to the rest of the UK. But the dust is starting to settle, and growth is climbing down to healthier altitudes. This is giving London buyers some welcome breathing space and boosted confidence – which in turn will allow activity to flourish into 2015.”
Graham Davidson, managing director of Manchester based Sequre Property Investment, said: “While Manchester is seen as the heart of the northern powerhouse, it is promising to see a 6.2 per cent price rise across the north east in cities like Leeds and Sheffield, which form the other points of this burgeoning economic triangle.
Salford’s 11.7 per cent price rise is testament to the large-scale regeneration that is happening in the area and we would hope that this will spread as continued investment makes its mark.
As London and the southeast become the sole preserve of the wealthy, it is not surprising that people are considering options further afield in these northern areas, particularly investors whom can enjoy far higher returns.”
Guy Meacock, Prime Purchase, had this to say: "The average house price increased by 0.6 per cent in February, following a 0.2 per cent fall in January, reflecting a seasonal change you would expect to see at this time of year. On balance, the weather has been good and the market place tends to shift as you come out of winter into spring. A change in light, longer daylight hours and the ability to view property after work all signals a seasonal shift where the market moves up a gear.
There is more hope and optimism around. As we move that much closer to the general election, there seems to be an underlying confidence that David Cameron is likely to get back in so although the mansion tax issue is not settled by any means, people are talking about it less. Indeed, no client has asked me about it this year, suggesting it is not on people’s minds.
There has been an increase in stock, although not masses. Sellers' expectations were raised a year ago but they reached their peak last year in very general terms, and definitely in London where the market recedes relatively quickly. Those windows of opportunity where prices are more realistic are only open for so long; they are not closing just yet but a slightly resurgent spring market is giving a bit more balance and increasing the number of buyers out there."
Jonathan Samuels, chief executive of Dragonfly Property Finance, added: "Price rises have moved from the vertiginous to the virtuous. The dizzying rates of growth seen this time last year are gone but not forgotten. But neither are they to be mourned. What we have now is a more sustainable rate of price rises, underpinned by sound fundamentals.
While London prices - and those in many southeast commuter towns - continue their seemingly relentless double-digit inflation, both the Land Registry data and this morning's Nationwide house price index show the national rate of growth has returned to more sensible levels.
Transactions are down, and the month-on-month growth has softened considerably, but this is to be expected as the market pauses for breath ahead of the election.
But the pause is likely to be a short one - with mortgage rates very low and the falling prices of consumer goods making people feel richer, buyer confidence is being steadily stoked. As that demand butts up against a systemic shortage of property, we should expect prices to remain on their upward trajectory."
