The monthly change from February to March shows an increase of 0.1 per cent. Repossession volumes decreased by 18 per cent in January 2013 to 1,317 compared with 1,602 in January 2012.
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 9.6 per cent.
London also experienced the greatest monthly rise with a movement of 2.5 per cent.
The region with the greatest annual price fall is the North East with a decrease of 5.5 per cent.
The North West saw the most significant monthly price fall with a decrease of 2.5 per cent.
The most up-to-date figures available show that during January 2013, the number of completed house sales in England and Wales decreased by 5 per cent to 41,763 compared with 43,752 in January 2012.
The number of properties sold in England and Wales for over £1 million in January 2013 increased by 28 per cent to 610 from 476 in January 2012.
London and Wales were the only regions to see an increase in repossessions of 28 per cent and 24 per cent respectively (January 2013 compared with January 2012).
Giles Hannah, managing director of residential agency VanHan, says:
"There is no getting away from the fact that national average indices conceal significant regional differences. The UK as a whole has seen modest growth, with areas such as London, Oxford and Henley seeing price rises while Nottingham, Wales and the Midlands have seen price falls. The overall outlook is broadly positive, however, with market confidence across the UK improving.
"London is undoubtedly the big success story and is doing a good job of pulling up the national average. Its residential sales market remains robust with prices continuing to rise. International buyers, particularly from Asia, are fuelling demand for best in-class properties and are snapping up properties at 10 to 14 per cent discounts as a result of the weakness of sterling compared with their own currencies. UK-based buyers are also highly active, not just internationals, and are seeing investment in London property as an alternative to a pension and a way of maintaining and growing their wealth.
"We have also witnessed a rise in French high-net-worth families relocating to London owing to the increased taxes in France, creating a shortage of supply in the £5m-plus bracket and fuelling price rises. Holland Park has seen a vast uplift in sales activity and significant house price increases, for example. The number of sales in the £1m-plus bracket saw a 28 per cent jump in January so this market continues to thrive.
"The Cyprus situation has seen a number of people purchasing via offshore companies having to restructure their purchase, causing a delay to some transactions. However, London has benefitted from funds being moved from less stable euro economies into the London property market, and we don't see this changing anytime soon."
Jonathan Harris, director of mortgage broker Anderson Harris, says:
"On the lending front, the picture is increasingly positive. The extension of the Funding for Lending Scheme means mortgage rates are likely to continue to fall, making home ownership more affordable, particularly as lenders continue to offer better rates at higher loan-to-values, which means first-time buyers don't have to drum up such a big deposit.
"There was a welcome drop in the number of repossessions in January compared with the same month a year ago but any repossession is one too many. The fact that anyone is being repossessed when interest rates are at historic lows is a real concern. It is vital that lenders continue to show forbearance towards borrowers."
David Brown, commercial director of LSL Property Services, comments:
“More lending at higher loan to value ratios is stimulating the bottom of the market – those who need help most. However, better access to credit isn’t the same story across the board, and affordability is still restrained by stagnating incomes. In regions like the North East, falling house prices demonstrate how demand still isn’t keeping up with supply in many sections of the market and areas of the UK. The latest economic news has been positive, but that progress now needs to be translated into jobs and wage growth.
“In the meantime, a huge number of people are renting – and luckily landlords have been able to accommodate them. While that demand has helped push rents up too, improving mortgage availability has helped landlords expand their portfolios to keep up. Therefore, both tenants and prospective buyers should look forward to more cheap credit from Funding for Lending – as it starts to flow through the system more quickly.”
