The Land Registry released their house price index for November 2012 on 2 January. The Index currently stands at 259.3, and the average house price in England and Wales is £161,490. This shows a seasonally adjusted* month-on-month increase of 0.3% since September. The annual increase (since November 2011) is 0.9%.
Sales volume figures for Q3 show that 57,971 properties were sold between June and September 2012. This is less than the same period in 2011, during which 62,006 properties were sold; specifically, there has been a decrease of –6.5%.
All property types have demonstrated an increase in value. Of all the property types (detached, semi-detached, terraced and flat or maisonette), detached houses have shown the lowest increase in average value (0.2%), whereas flats and maisonettes have shown the highest (1.8% – double the average annual change of all properties).
Due to the popularity of this type of property with buy to let borrowers, this seems to substantiate predictions made last year that buy to let lending will have a growing influence on house prices. However, because of their popularity with second and subsequent home buyers, detached homes have been shown to hold their value more readily than flats and terraced properties; large increases or decreases in selling prices of the latter two could be attributed simply to market volatility.
London continues to have the highest annual growth (5.9%), and the average cost of buying a home in the capital is currently £362,592. The greatest annual fall occurred once again in the Northeast to £98,304; a decrease of –2.9%). The Northeast is also the home of Sunderland, which saw the greatest decrease among the metropolitan districts (–9.3%).
However, where the Northeast showed the biggest annual and monthly decrease in October, it has shown the largest monthly regional increase in this Index (2.4%). The greatest monthly decrease occurred in Wales (–1.6%).
The House Price Index is calculated using the values of properties sold more than once since January 1995 (with the average value at that time representing the base level of 100.0). Selling prices from approximately 6 million identified properties (from the full dataset of 16 million) are used.
* The Land Registry’s data is revised each month as additional data is added – please see www.landregistry.gov.uk for more information.