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House prices fell by 0.2% in May

House prices fell by 0.2% in May

Category: Mortgages

Updated: 28/06/2010
First Published: 28/06/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
There is further evidence that the growth seen in the housing market over the last year is slowing down.

Figures from the Land Registry have revealed that the average house price in England and Wales fell for the first time in more than a year in May.

A monthly fall of 0.2% was seen last month, the first negative movement since April 2009. It means that, as of the end of May, the average price of a home was £165,314.

The region with the largest monthly fall was the East Midlands, which saw 3.6% wiped off the value of the average property during May.

The South East was the region that performed best in the month, with house prices rising by 0.9% compared with April.

Annually, house prices have risen by 8.2%, although May was the first month since March 2009 that the annual figure did not increase.

In fact, all the regions in England and Wales experienced increases in their average property values in the last year.

Over the last 12 months, the London property market has registered the strongest gains, with an annual increase of 14.2%. A homebuyer purchasing a London property can expect to part with some £338,708.

These figures show that the annual rate of house price increases in London continue to outstrip that seen in the rest of England and Wales.

Despite the increase in prices, it seems that people are still keen to get on or move up the property ladder.

The number of houses bought increased from an average of just over 32,000 per month from December 2008 to March 2009, to 50,658 in the same period a year later.

And it is detached properties that are attracting the most marked increase in value, with these homes seeing a 9.6% rise in asking price over the last year.

Flats/maisonettes, semi detached and terraced homes have seen annual price increases of 8.9%, 7.9% and 7.6% respectively.

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