Average house price creeps closer to 2007 peak

The average house price in England and Wales is now £175,653 compared with the peak of £181,442 in November 2007, according to the latest data from the Land Registry.

Related topics:  Mortgages
Amy Loddington
26th September 2014
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This represents an annual growth of 7.2% in July with house prices up 1.7% since June. Repossession volumes decreased by 42% in May 2014 to 857 compared with 1,488 in May 2013. The region with the greatest fall in repossession sales in May 2014 was the East Midlands.

Over 88,930 residential properties in England and Wales lodged for registration in July ranging from £18,000 to £24.5m.

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 19.3%, and London also experienced the greatest monthly rise with a movement of 3.3%. The North East saw the lowest annual price growth with a movement of 2%, while Yorkshire & The Humber saw the most significant monthly price fall of 0.6%.

The most up-to-date figures available show that during May 2014 the number of completed house sales in England & Wales increased by 10% to 72,900 compared with 66,325 in May 2013. The number of properties sold in England and Wales for over £1 million in May 2014 increased by 32% to 1,032 from 779 in May 2013.

Mark Harris, chief executive of mortgage broker SPF Private Clients, says:

"As far as the Land Registry is concerned, the London property market shows no signs of slowing. Prices rose 2.7% in August and 21.6% over the year, giving an average property price of £476,000.

"While there may be a slowdown in the £2m-plus market regarding concerns about a mansion tax if Labour win the general election, the mainstream market motors along with borrowers taking advantage of cheap mortgage rates and an improving economy, which brings better job security.

"However, Mark Carney also said this week that the first interest rate rise is getting closer so borrowers should not be complacent. While the Governor of the Bank of England pledged that increases would be 'limited and gradual' borrowers must still plan ahead and ensure they can afford their mortgage now - and in the future. Five-year fixed rates in particular are good value and provide certainty for the medium-term."

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