There is no increase in the monthly change from July to August.
- The region in England and Wales which experienced the highest increase in its average property value over the last 12 months is London with a movement of 5.0 per cent.
- The North East experienced the greatest monthly rise with an increase of 0.8 per cent.
- Wales experienced the greatest annual price fall with a decrease of 3.2 per cent.
- Wales also saw the most significant monthly price fall with a decrease of 2.4 per cent.
- The most up-to-date figures available show that during June 2012, the number of completed house sales in England and Wales decreased by 3 per cent to 56,077 compared with 57,702 in June 2011.
- The number of properties sold in England and Wales for over £1 million in June 2012 increased by 35 per cent to 647 from 478 in June 2011.
Matthew Turner, director of Astute Property Search buying agents, commented:
"The property market is in the black over the year but unless first-time buyers and people with smaller deposits start getting finance, and soon, it could easily fall into the red. August was quiet, as you would expect given that the nation was encamped in front of TVs, but September has seen quite a pick-up in activity. It's by no means booming, but it's better than it has been.
"London remains in a league of its own and continues to be lifted by overseas demand. Compared to many areas of Europe, London is a port in the storm, despite problems in our own economy. Ironically, it's the rentals market that could come to the rescue of the sales market.The cost of renting is now significantly higher than the cost of buying and people are increasingly doing their best to get onto the property ladder.
"If the Funding for Lending Scheme can genuinely start funds flowing into higher loan-to-value products then the market could rebound. If it doesn't, then who knows?"
Peter Joseph, director of the national low cost estate agent ithinkproperty.co.uk, was less positive, although said there was cause for 'cautious optimism':
"No amount of Olympic fever or holiday distraction factor can completely explain away the market's flat performance in August. With transaction levels still bumping along at low levels, prices remain highly volatile. Even London, which has powered ahead of the rest of the country over the past year, saw no increase in August.
"Prices are being further distorted by struggling high street estate agents who often overvalue properties just to win an instruction. However there is some cause for cautious optimism in the final quarter of the year. September is traditionally a solid month for the housing market as would-be buyers are spurred into action with the aim on being "in by Christmas".
"Limited supply is nudging prices up in many areas and the buy-to-let market is buoyant once again. The Bank of England's Funding for Lending scheme is helping make more mortgages available, but high rates for borrowers with less than a 15% deposit are still putting many potential buyers off. The housing market is slowly dusting itself off, but the speed of its recovery is being held back by the lack of mortgages at higher LTVs."
Tracy Kellett of buying agents, BDI Home Finders, commented:
"That the North East, which has consistently underperformed throughout 2012, showed the highest price rise in August, reflects the extreme volatility in the market. Both stock and transaction levels are very low at present and this is massively skewing the monthly performance figures.
"The flat property market is a mirror image of the flat economy. Ironically, flat is almost flattering. The country house market, for example, has been devastated this year, with regular price reductions and sales roughly 20%-30% below asking price.
"The UK property market is on the edge of a precipice.Punitive lending criteria, the slow but sure death of interest-only, extreme consumer caution and an economy stuck in first gear have taken it to the edge. The escalating crisis in Europe could push it off. What we must not forget is that interest rates will not stay this low forever, causing many households severe pain and leading to a spate of repossessions."
David Newnes, director of LSL Property Services, comments:
“While August was far from a bumper month for the housing market by historic standards, it’s clear that the added distraction of the Olympics did not derail buyer activity. In fact, as things stand, both prices and activity are holding up pretty well in the face of choppy economic waters. However any substantial recovery will be closely tied to the ability of banks to get adequate and affordable funding to the frustrated buyers that really need it.
"There have been welcome signs that more high LTV products are starting to become available, and the Bank of England’s latest credit conditions survey suggests banks have a healthy appetite to boost their lending to those with smaller deposits in the coming quarter. Yet it’s crucial that this goes hand in hand with a relaxing of lending the stringent lending criteria at present which is playing a key role in limiting the number of buyers able to access the higher LTV deals that are on the market.”
Paul Hunt, managing director of Phoebus Software said:
"The housing market is stagnant and we won't see any real jump in transaction levels and house prices until there is more focus on tackling the lack of first time buyers. Lenders are offering great rates and attractive mortgage packages but there needs to be
