Land Registry: house prices just £800 below 2007 peak

The February Land Registry data shows an annual price increase of 6.5%, taking the average property value in England and Wales to £180,252 compared with the peak of £181,083 in November 2007.

Related topics:  Finance News
Rozi Jones
27th March 2015
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The regional data indicates that London experienced the greatest 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.

Guy Meacock, head of the London office for buying agency Prime Purchase, says:

"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."

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