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House prices creep up

House prices creep up

Category: Mortgages

Updated: 28/07/2009
First Published: 28/07/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Property prices in the UK have recorded their first month-on-month rise in well over a year, according to figures published by the Land Registry.

The survey is different to most of the other house price indexes as it compares the price of homes sold now, compared to the price it was previously paid for.

In June, the average price paid for property increased by 0.1 per cent, to £153,046 – the first positive movement in transaction prices since January 2008.

"This is the first time in well over a year that the monthly change has been positive," said the Land Registry. "However, as the monthly increase is only 0.1 per cent, the movement does not signal a return to solid growth, but rather flattening prices."

London experienced the most positive month, with prices increasing by a full two per cent in June. The average transaction price for property in the capital is now £301,859.

Yorkshire and The Humber was the region with the most significant fall, with sale prices down by 1.2 per cent, taking the average property price to just under £121,000.

While the monthly figures offer some encouragement that the worst of the housing market dip may have been and gone, annual comparisons still make for grim reading. Over the last 12 months the rate of change in property prices is -14.0 per cent.

Furthermore, the number of sales averaged 30,997 per month between January and April this year, down by almost half same time in 2008, when an average of 59,948 sales were agreed per month.

However, figures reflecting recent trends suggest that transaction levels will continue to rise, according to Keshav Thukaram, managing director of Smartlandlord.co.uk. "This is also confirmed by estate agents Hamptons International, which reported 63 per cent more buyers registering compared with last year, almost twice as many sales and rising prices."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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