Land Registry: house prices up 5.6% in October

House prices rose by 5.6% in October, taking the average property value in England and Wales to £186,350, according to the latest Land Registry house price index.

Related topics:  Finance News
Rozi Jones
27th November 2015
house growth graph this is actually the green one

Monthly house prices increased by 0.4%.

London experienced the greatest increase in its average property value over the last 12 months with a movement of 10.6%

Yorkshire and The Humber saw the lowest annual price growth with an increase of 1.4% and also saw the most significant monthly price fall with a decrease of 1.8%

The data also shows that the number of property transactions has decreased over the last year. From May 2014 to August 2014 there was an average of 82,748 sales per month. In the same months a year later, the figure was 77,046.

Jonathan Adams, director of prime central London estate agency Napier Watt, said:

"House prices continue to rise with London again leading the way with double-digit growth over the past 12 months.

"London house prices now top half a million pounds, way beyond the means of anyone on an ‘average’ income. First-time buyers looking for more modest properties are increasingly unable to buy without considerable help from the Bank of Mum and Dad. However, the announcement of the London Help to Buy scheme in the Autumn Statement will go some way to helping first-time buyers onto the housing ladder.

"We fully expect property price growth to accelerate over the next few months as landlords and second homeowners bring forward their decision to buy in order to avoid paying an extra 3 per cent stamp duty from April onwards. Unless there is a significant increase in stock coming to market to absorb this increased demand, which at the moment looks unlikely, prices will continue their upward trajectory."

Jeremy Leaf, former RICS chairman and north London estate agent, added:

"The London property market in particular marches on with the greatest increase in average property values over the past 12 months. It was our busiest October in a long while in north London, with the market showing no obvious signs of a slowdown.

"The lack of supply is a huge issue and will continue to fuel house-price growth over coming months. Encouragingly, construction numbers are up, and the Government is pledging to build more homes, but there is no room for complacency. Shortages are ongoing: every day that we are not building enough homes, the gap is widening between the stock we have and what is required, and upwards price pressures will continue.

"Demand for home ownership is high but affordability continues to be a problem for many. While mortgage rates are cheap, meeting lenders’ tougher criteria can be an issue. With the average property price in London more than £500,000, unless you earn way above the national average salary, you have precious little hope of being in a position to buy. Generation Rent is being left out in the cold: they have aspirations to buy but are being pushed further away from their goal. Any measures which help first-time buyers are good for the whole housing market and the London Help to Buy scheme will be helpful."

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