Property Wire: House prices in England and Wales trended upwards towards end of 2012
Wed 02 Jan 2013
November house prices in England and Wales increased by 0.3% in November compared with the previous month, according to data released today (Wednesday 02 January) by the official land registry.
The November data from Land Registry's flagship House Price Index also shows an annual price increase of 0.9% which takes the average property value in England and Wales to 161,490.
However there are considerable regional variations. 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%.
The North East experienced the greatest monthly rise with an increase of 2.4% and also experienced the greatest annual price fall with a decrease of 2.9%. Wales saw the most significant monthly price fall with a decrease of 1.6%.
The most up to date figures available show that during September 2012, the number of completed house sales in England and Wales decreased by 21% to 50,517 compared with 63,552 in September 2011.
The number of properties sold in England and Wales for over 1 million in September 2012 decreased by 19% to 613 from 753 in September 2011.
Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), said that 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,' he pointed out.
'However, we are yet to see much movement in the average purchase mortgage loan to value (LTV), 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,' he added.
According to Peter Rollings, chief executive officer of estate agent Marsh & Parsons rising national house prices will provide cheer for home owners 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,' he explained.
'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,' he added.