The latest house price index from the Land Registry shows an expected pick-up in monthly and annual price gains following May’s three-and-a-half year high in mortgage approvals. The average house price in England and Wales currently stands at £162,621, or an index figure of 261.2. This is 0.6% higher than in May, and 0.8% higher than in June 2012.
The latest sales transaction figures available from the Land Registry are from January to April of this year. Though they show a slight decrease of 2.1% (from 48,299 to 47,308) from the same period in 2012, they do not yet reflect the pick-up in activity seen in the middle of the second quarter.
Prices in the capital rose by 3.1% (monthly) and 6.9% (annually) to £383,930 – by far the largest increases recorded for June. Without the effect of prices in the capital, the average price in the UK falls to £135,453. This is a decrease of 16.7%.
The North East
On the other end of the spectrum, prices in the North East are performing poorly, with the largest monthly (–2.2%) and annual (–3.8%) fall. Indeed, it is the only UK region to see an average five-figure price tag (£96,373). Excluding the worst-performing region, the average UK price is 4.8% larger, at £170,403.
The Nationwide index
The Nationwide house price index for July 2013 paints a different picture; its figures show a marked decrease in the average price, with the second consecutive monthly fall and sixth consecutive annual fall. However, there are two major differences between the two indices. Whilst the Nationwide index takes Scotland and Northern Ireland into account, it is not based on repeat sales like the Land Registry index. It is therefore important to use a number of sources when tracking house price movements in the UK.