Liquid error: wrong number of arguments (2 for 1) My Introducer: Land Registry data shows house prices up 0.3% since October | Marsh & Parsons Sales and Lettings Estate Agents London

Blogs, Press & Media

My Introducer: Land Registry data shows house prices up 0.3% since October

Wed 02 Jan 2013

Land Registry data shows house prices up 0.3% since October

The November data from Land Registry's flagship House Price Index shows an annual price increase of 0.9%.

On a monthly basis, house prices have risen 0.3% since October, meaning that the average house price in England and Wales is now 161,490. The South East tops the table of regional applications with 262,078 in November.

Unsurprisingly perhaps, the region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with a movement of 5.9%, although the North East experienced the greatest monthly rise with an increase of 2.4%.

Despite that, the North East also experienced the greatest annual price fall with a decrease of 2.9 per cent.

Brian Murphy, head of lending at MAB, comments: Although the House Price Index shows that completed house sales were considerably lower in September 2012 than at the same time during 2011, data from the MAB National Mortgage Index for October and November 2012 highlights a much stronger performance towards the end of last year.

Purchase mortgage applications were up by 9% year-on-year in October and 13% in November, giving a really positive indication of growing demand in the market. In fact, October saw more purchase applications than any other month during 2012, and with healthy competition between lenders, we have every reason to expect this positive trend will continue during 2013.

However, we are yet to see much movement in the average purchase mortgage loan to value, which stood at 70.7% in November 2012. With average purchase prices and loan values both on the rise, first time buyers in particular will hope to see the current attractive borrowing rates extended to include higher LTV offerings. Peter Rollings, CEO of estate agent Marsh & Parsons comments: Rising national house prices will provide cheer for homeowners who have seen their equity dwindle since the initial credit crunch, but the falling number of moves taking place highlights the topsy-turvy nature of last years housing market. Even as late as September the market was struggling to come to terms with distractions earlier in the summer, which hampered the number of buyers in a position to finalise moves in the month.

"But recent improvements in mortgage lending, combined with rising national house prices point towards a more positive end to the year and start to 2013. If the cheaper funds from the FLS can find their way to first-time buyers without substantial deposits, it will go some way towards seeing transactions rebound sustainably and bridging the price growth gap between London and the rest of the country.

Independent buying agent Gabby Adler, says: "November saw property prices continue to rise in parts of the country, with the North East performing particularly strongly. This comes as a surprise when the same region also saw the biggest annual fall. It suggests that much of the data should be taken with a large pinch of salt.

"While prices have fallen in parts of the country, the picture in London is very different. In the capital, competition for the most desirable homes is very hot indeed with properties achieving above the asking price.

"Lack of stock is the main problem in parts of London such as Barnes, where there is almost nothing on the market in the 800,000 to 1.3m price bracket. This is what most families are looking to spend when they move to the area. The top end of the market is quite different and most of these properties are sitting on the market for many months, with super-prime properties taking a year or more to sell across Richmond-upon-Thames, for example.

"We expect to see the housing market pick up a little at the start of this year as homeowners who have struggled to sell their properties last year try and re-market them. But unless they are realistic on pricing, it may still be a struggle to sell because lack of confidence means many buyers will only be persuaded to take the plunge if they spot a real bargain."

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: "Gross mortgage lending edged higher in November but lack of consumer confidence, caused by weak economic growth in the UK and the ongoing eurozone crisis, means most homeowners feel more comfortable paying down their debt rather than taking on bigger loans.

"Record low interest rates have resulted in some of the cheapest mortgages we have ever seen with lending volumes slowing ticking up month by month. It means last year saw stronger lending volumes than initially forecast.

"However, the biggest barrier to home ownership remains the deposit as first-time buyers struggle to drum up the tens of thousands of pounds required to get on the housing ladder. Funding for Lending should make this easier this year, resulting in more choice at higher LTVs and better rates. It is no overnight solution but a slow burner, yet early signs are encouraging."

Jonathan Hopper, managing director of the property search consultants, Garrington, commented: "Regional disparities and price volatility defined 2012 and are once again apparent in the November data. For prices to have grown by 0.9% over the year underlines the resilience of the property market. What's resoundingly clear is that the South is in a far stronger position than the North and Wales. This trend looks set to continue as we move into 2013.

"Given what we have just been through, specifically the double dip recession, UK prices overall have stood up fairly well. December was a surprisingly strong month in terms of both transactions and new enquiries and should be a good springboard for activity in January. The Funding for Lending scheme is certainly starting to have a beneficial effect on the market, as rates come down even at higher LTVs.

"Prices will remain volatile due to low transaction levels but they will not collapse. Clearly, there is the potential for a Black Swan Event in Europe but barring that, I would say the worst is behind us. The capital, driven by its prime and super-prime boroughs, remains in a league of its own and if it weren't for London, average UK prices would be a lot lower."

Click here for original article

Contact our office

Close

Contact our Lettings team

Close

Contact our Selling team

Close

Contact our About us team

Close

Contact our Corporate Services team

Close

Contact our International team

Close

Contact our Land and New Homes team

Close

Contact our Professional Valuations team

Close

Contact our Professional Services team

Close

Contact our Property Management team

Close

Contact our Riverside Properties team

Close

Contact our Career team

Close

Contact our office

Close

Request a viewing

Close

 

Close

Share this with a friend

Close