Property Secrets: House prices soar in places but plummet in others
Thu 06 Jun 2013
Landlord Today state that house prices rebounded last month - but behind the headline figure is a story of completely different markets. In London, said the Land Registry, house prices went up 6.2% in the last year. In the North-East, house prices fell by almost the same amount, 5.7%, over the same period. Overall, the average price in England and Wales last month was 161,458 - up 0.4% since March, and up 0.7%
since April last year. In London, average house prices are well over double the national average, standing at 375,795. In the North-East, the average house price is 95,546. London's monthly rise of 1.4% between March and April was also much higher than elsewhere, and contrasted with the monthly fall in the North-East of 1.6%. But even in London itself there were big differences, with five boroughs showing double-digit increases in house prices over the last year and two with gains of under 2%. House prices rose over the month in five regions, and in five regions they fell. House sales went down, the Land Registry also said, although its latest figures only go to February. Between November and February, there were an average of 51,386 sales per month, compared with 53,151 for the same period 12 months earlier. In February itself there were just 43,573 transactions, 3% down on February 2012. The Land Registry also now reports on repossession figures, which it says averaged 1,400 per month between November and February, down from the 1,695 per month from the same period a year earlier.
Nationwide's latest - and more up to date - house price survey, reporting for May, said house prices in the UK edged up 0.4% compared with April, to stand at 167,912. Nationwide said that there were signs of real momentum in the market, with the number of property transactions in the first four months of this year running at around 5% above the monthly average of 2012. In London, estate agent Peter Rollings, of Marsh & Parsons, insisted there is no house price bubble in the market. He said: "A steady growth of 6.2% does not constitute a bubble and the figures show the London property market continuing its orderly rise. Demand for prime London properties remains consistently high, bolstered by both overseas and domestic buyers striving in competition for the best properties."