The prospects for the housing market look slightly brighter today after new figures showed that prices rose in August.
A number of property indices and surveys have shown the market as being on something of a downward spiral lately, with falling demand being a common theme.
However, data released by the Land Registry shows a 0.3% rise in prices was recorded in August – traditionally a quiet month in the mortgage market.
While a fall from the previous month, the rise is the fifth month in a row that the Land Registry has reported an increase, with the average price of property in England and Wales finishing the month at £167,423.
In addition, prices at the end of August were 6.7% more than they were a year ago, and annual house price inflation has been positive for the last ten months in a row.
Sales volumes have also increased from last year.
In March to June 2009, transaction volumes average 43,825 per month, while in the same period this year the average was 53,089.
The London property market continues to be resolute, with prices rising by 0.9% in August, bringing the average value of a home in the capital to £345,734.
The city also boasts the strongest annual growth, with costs expanding by 11.4% over the past 12 months, good news for home owners, not so good news for potential buyers.
The region with the smallest annual price growth was the North East, where average prices have risen by 1.6%.
Nationwide, detached homes have risen most in price, with the average home increasing from £242,907 to £264389 from August 2009 to August 2010.
Semi detached homes increased in value by 6.1% on average (£148,621 to £157,691), while terraced homes and flats/maisonettes both registered positive growth of 6.2% (£120,194 to £127,608 and £146,840 to £155,907 respectively).
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