England and Wales House Prices Up 1% in July

According to the latest data from the Office of National Statistics, house prices in England and Wales increased by 1% in July, taking the average house price to £164,098 as shown in this August 29th, 2013 article by the Property Wire.


The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with a movement of 6.3%. The average price of property in the capital is £385,799 in comparison with the average for England and Wales of £164,098.

In London the borough with the highest annual price rise is Lambeth, with an increase of 11.4% while Islington experienced the highest monthly increase, up 2.3%. Newham saw the least significant annual growth at 0.7% and Barking and Dagenham saw the greatest monthly price fall, down 1.5%.

Both London and the Midlands experienced the greatest monthly rise with an increase of 2.1%, while the North East also saw the most significant monthly price fall with a decrease of 0.5%.

The metropolitan district with the largest annual price increase is Birmingham, rising by 2.6% and Rochdale experienced the highest monthly price rise, with an increase of 2.2%.
Sandwell saw the most significant annual price fall, down 6.1% and Sandwell also saw the greatest monthly price fall with a decline in prices of 2.1%.

But on a monthly basis the Isle of Anglesey experienced the strongest monthly growth with an increase of 2.9% while Blaenau Gwent saw the most significant monthly price fall with a drop of 5.9%.

The most up to date figures available show that during May 2013, the number of completed house sales in England and Wales increased by 19% to 62,651 compared with 52,516 in May 2012.

The figures also show that number of properties sold in England and Wales for over £1 million in May 2013 increased by 28% to 740 from 576 in May 2012.

The region with the greatest fall in the number of repossession sales was Yorkshire and the Humber where repossessions dropped by 32% in May 2013 compared to the previous year.
Overall repossession volumes decreased by 23% in May 2013 to 1,365 compared with 1,765 in May 2012.

Paul Smith, chief executive officver of haart estate agent, said that the figures shows that the pace of the property market is up and now is a good time to sell.

'Mark Carney, Governor of the Bank of England, has quelled fears that we are sitting on a volatile property bubble, by indicating that the Bank is ready with a plethora of tools to guard against such a scenario. His additional signal that interest rates are likely to remain the same until late 2016 injects further confidence into the rapidly recovering property market, with lenders able to offer highly advantageous deals for those seeking to step onto the property ladder,' he explained.

'Today’s Land Registry House Price Index shows that property prices are continuing to rise across the UK due in part to the increase in sales transactions which are up 19% annually in May 2013. While demand is very high, our market monitor this month indicated that new buyers across the UK are up 28%, and the majority of people have not cottoned on to the fact that the economy, and the property market, are looking incredibly rosy now is the time to sell now before everyone else does,' he added.

David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, said that a splurge of sales, married to a painful lack of supply of homes, is driving up house prices at a rate of knots.

‘It has been a staggeringly quick improvement over the last 12 months, and is underpinning the wider economic recovery. Getting a mortgage is significantly easier than it was in 2012, and this has opened the door to thousands more first time buyers. Rates are cheaper, choice is wider, and criteria are less stringent, which has triggered a mortgage boom,’ he explained.

‘It has allowed more new buyers to realise their dreams of home ownership, which were a very distant prospect several years ago. In the long term, the government needs to do more to ensure the improvements in the housing market are sustainable,’ he added.

He also pointed out that if prices continue to rocket, it will freeze the next wave of first time buyers out the market and dash dreams of home ownership for buyers who can’t wield a big deposit. ‘More homes need to be built if supply is to keep pace with demand. An equilibrium between supply and demand should be the basis of a responsible and sustainable housing market.

There is currently a pitiful shortfall in housing starts. Planning restrictions need to be eased and the government needs to do more to help developers,’ he concluded.

According to Paul Hunt, managing director of Phoebus Software the housing market is proving to be resilient with underlying demand supporting house prices in London and the East Midlands in particular.

‘The catalyst for all this has been significant improvement in mortgage availability, and this is making life much easier for first time buyers. Mortgage lenders have thrown a lifeline to high LTV buyers by bringing in a range of cheap and more accessible deals onto the market, and this has sent a flurry of first time buyers flowing into the market,’ he said.

‘Lenders have been vital in their innovative approach, supporting potential buyers, while schemes like Funding for Lending have acted as a major helping hand for the mortgage market and made it markedly stronger. The months ahead look set to be slightly easier for mortgage lenders, thanks to the government’s support which should help improve the availability of finance for house purchases and help boost sales figures,’ he added.

Article Source: http://www.propertywire.com/news/europe/england-wales-property-prices-201308298174.html