Land Registry: House prices up 1.7% in July

A lack of houses on the market for sale has pushed up monthly house prices, with July seeing a monthly increase of 1.7%, according to the latest Land Registry house price index.

Related topics:  Finance
Rozi Jones
28th August 2015
house money

The average house price in England and Wales has reached £183,861, while annual price change now stands at 4.6%.

The number of property transactions has fallen by 15% annually, while the sale of properties over £1 million has dropped 21%,

From February 2014 to May 2014 there were an average of 70,029 sales per month, dropping to 61,283 in the same months a year later.

The July data for London shows a monthly increase of 2.5%. At 8.3%, the annual change for London is considerably higher than most other regions. The average price of property in the capital is £488,782 in comparison with the average for England and Wales of £183,861.

However the region with the most significant annual price increase is the East with a movement of 8.9%. The East also experienced the greatest monthly price rise with a movement of 2.8%.

The North East saw the lowest annual price increase of 0.4%, while Wales saw the only monthly price decrease with a fall of 0.3%.

The number of properties sold in England and Wales for over £1 million in May 2015 decreased by 21% to 878 from 1,113 in May 2014.

The number of properties sold in London for over £1 million in May 2015 decreased even further, by 26% to 583 from 783 in May 2014.

John Eastgate, Sales and Marketing Director of OneSavings Bank, commented:

“This is the biggest monthly rise in house prices for a year, driven by positive sentiment continuing post-election and also, arguably, by the lack of houses on the market for sale. The simple fact that demand exceeds supply will continue to push house prices upwards and as long as that is the case, it’s hard to see prices moderating. The mortgage market remains supportive, and low rates aren’t going anywhere. If economic turbulence from China pushes back a base rate rise until late 2016, as it appears to be doing, we may well see even more people capitalise on low mortgage rates to take their first step on the ladder.”

Danny Waters, Chief Executive Officer of Enterprise Finance, said:

“UK house prices are now back where they were before the financial crash and for once it’s not London at the forefont of value growth, but the East region. Sales volumes are down on the equivalent period last year which would suggest that the sounder economic footing the UK now finds itself on has yet to translate into increased activity, but there is still every expectation of a strong second half of the year.

“Rising house prices may be making things difficult for prospective homeowners, but it’s pleasing news for those who have already established a foothold on the property ladder. However, the availability of finance – both in terms of mortgage lending and more specialist types of borrowing – and the attractiveness of the rates on offer offers plenty solace to those looking to access capital.”  

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