Annual price increase is 12.9%
The annual average price of all residential property transactions in England & Wales was 12.9% higher than a year ago when prices were still falling - a significant recovery albeit in a market still characterised by great uncertainty. This is now the sixth consecutive month in which the annual rate of change in house prices has been positive.
Housing transactions fall by 5% in April
There were an estimated 50,650 properties sold in April 2010, which is 5% lower than the number of sales recorded in March 2010. The level of sales in April 2010 is the second lowest April figure since the Land Registry started reporting transaction numbers in 1995.
London house prices reach a new record level
For the second month in succession the average house price in London has reached a new peak. There is now substantial evidence to show that the major movement in London house prices is taking place at the top end of the market, with more modest price rises being experienced elsewhere.
Dr Peter Williams, Chairman of Acadametrics, said:
“Reflecting the situation in the country as a whole, the current direction of the housing market remains uncertain. The average price of a home rose again in April 2010 and, at £225,963, is back where it was in August 2007, some two and a half years ago. The monthly increase, the twelfth in succession, was 0.5%.
"However as we show transaction numbers have fallen and it is quite clear we have been witnessing buyer competition in a market characterised by weak supply. This in turn reflects the great uncertainty that now hangs over the whole market.”
“The average price of a home in England & Wales is now £225,963. At this level, it is still down £5,865 or 2.5% from its peak in February 2008 of £231,828, but prices have recovered significantly and the index is showing a 12.9% increase over the last twelve months, albeit based on reduced transaction volumes. If sellers now start to return to the market in numbers then this may dampen both the monthly and annual rates of increase.
"However, it is clear that we are seeing London prices continuing to gather momentum and, if we exclude London from the aggregate England and Wales figure of £225,963 the average price drops back to £202,226, with London prices increasing on an annual basis faster than those in the rest of England and Wales.
“The uncertainty that characterised the start of the year has continued, not least because of the hung parliament and possible consequences for the UK economy. Until there is clarity regarding both the make up of the government and monetary and fiscal policy, many may chose to delay purchases or moves. In that regard our transactions data become the most important market indicator.
"With mortgage supply continuing to ease modestly, with a renewed 2 year Stamp Duty holiday for homes under £250,000 and with pent up demand from around 1 million would be home owners, there has been more to tempt sellers back to the market but clearly this has yet to feed through.
"Cash buyers remain an important force in the market thus underlining the continuing shortage of mortgages and this may also explain why more affluent areas are showing a stronger recovery. It also underpins the importance of house prices indices that include both mortgaged and cash transactions."
