The Land Registry house index report for July 2012 was published yesterday. It shows that the average house price in July was £162,900, this represents a 0.8% increase since June, and a 0.3% increase annually. Property transactions increased slightly over the last year: From February to May 2011 there were 46,531 sales per month, in the same period this year there were 49,343 house sales each month.
In London, house prices have risen at a much faster rate than in other regions. Annually, London house prices are averaging at £367,785 compared to the rest of England and Wales at £162,900. In terms of a percentage increase London house prices rose by 2.7% in July compared to June, with an annual increase of 6.5%. The London borough that saw house prices rise the most is Kensington and Chelsea, with an annual increase of 16.1%, whereas in Barking and Dagenham prices have fallen on an annual basis of 1.8%.
Wales, East Midlands, South East, East and West Midlands regions all saw an increase month on month. Whereas, Yorkshire and the Humber, South West, North West and North East regions all saw a decrease in house prices. The North West has the largest annual percentage decrease, with house prices 3.9% lower than the year before, but the North East is following closely behind with house prices 3.8% lower this year, compared to last. In the North East the average house price is £98,557, compare this to the average price in London (£367,785) and you can see the massive variance between regions.
Tracy Kellett, director of BDI Home Finders, said:
"Like a drunk uncle at a wedding, the housing market is still dancing in slow motion on the spot.
”For every small step forward, there is an ungainly lurch backwards.
"So while London is making strong progress, prices are still dropping in the North."
Hometrack published a report earlier in the week, which shows that the demand for houses fell by 1.3% nationally, and that property stays on the market for 9.5 weeks before being sold. Although buyers are still price sensitive, properly prices property will sell well, and within a reasonable timeframe.