Average property prices jumped £2,500 in October – equal to £80 a day – to reach the tenth record high this year. The price revival was driven by London properties, whose values have risen by £24,636 in the last year.
Last month also saw the strongest October for sales since 2007, with the north seeing biggest sales boost due to better levels of supply on the market.
But sales of homes worth over £1.5 million dropped by 35% year-on-year, which esurv attributed to steeper Stamp Duty costs. Its data shows that sales of homes worth more than £1.5 million have fallen by 35% in Q3, compared to a year ago. The implications can be seen in the 12.6% annual drop in prices in Kensington and Chelsea, while prices in the City of Westminster have also fallen, 5.5% year-on-year.
Richard Sexton, director of e.surv chartered surveyors, commented:
“There has been somewhat of a Halloween resurrection in house prices this October, as annual growth finally comes back to life. House prices across England and Wales are now 5.2% (£14,211) higher than a year ago – an uptick from 4.7% in the twelve months to September. As growth jolts back into action, this is the fastest annual rise in house prices recorded for six months, since April. In addition, a more spirited monthly price hike has taken property values to a new high – their tenth consecutive record this year – with average home values increasing by £2,443 (0.9%) during October, equal to rising £78.81 a day in cash terms.
“This reawakening of price growth has been driven by London and the South East, the fastest growing regions across England and Wales. East Anglia has experienced the strongest year-on-year rise of any region, with a 6.2% annual increase in house prices taking the average price for a property in the area to £241,284.
“This has been the best October for house sales for eight years, with 88,000 sales taking place during the month, up 9% since September. Regionally, the pattern of the sales is the reverse of what we’re seeing in house prices, with activity increasing fastest in the North, Yorkshire and Humber and North West, but falling in the southern half of the country. Supply of properties on the market seems to be the sticking point for sales growth, and activity in the northern most regions of England is also being facilitated by more affordable prices. With low interest rates now likely to be prolonged into 2017, there should be plenty of momentum to encourage further activity. But so far in 2015, total sales are still 4% down on last year, due to a slower first six months. We will need the current revival to storm through the remaining two months of the year, if we are going to match 2014 sales.”
