The slow growth of the UK housing market continued in July, according to the figures released last week by the Land Registry. The UK house price index data for July showed a 1.0% monthly increase and 0.8% annual increase in prices across England and Wales, pushing the index up to 263.6 – an average price of £164,098.
Each index also collates transactional data for the most recent three months available – in the case of this latest release, from February to May. The Land Registry has calculated that the average monthly sales volume for this period was 52,763, an increase of 4.5% on the same period in 2012.
The average number of monthly transactions since the beginning of the year currently stands at 50,835 – 3.4% higher than the average figure for January–May 2012.
Property market analysis
May saw a six-month high in property transactions; this resulted in a large boost to the average and helped push up the percentage increase in sales volume. Generally, areas which see higher sales volumes are likelier to have more stable prices, as wild deviations are ‘ironed out’.
This is why London continues to exhibit such vast increases despite a relatively low volume of transactions. The monthly and annual price changes in the capital in July were 2.1% and 6.3% respectively; by far the largest annual increase and, jointly with the East Midlands, the largest monthly increase by region too.
The average London house price is currently £385,799; when removed from the national average, the latter figure decreases to £139,652. This means that the average property in the capital currently costs 2.8 more than the average property elsewhere.
Further housing market news
The Land Registry notes that, as figures are revised with the addition of each month’s data, July’s figures may be altered slightly in the next release. It also notes that the reported sales volume typically increases over time, due to the lag in obtaining this data.
The next UK house price index will be released on 27 September, 2013. Read the current report in full.