Peter Rollings commenting in response to the latest Land Registry figure
Fri 26 Aug 2011
"The Land Registrys latest figures will give succour to many homeowners across the country. House prices have not only arrested their steady fall, but increased by an average of 2,100 in July. But its far too soon to say the housing market is in recovery. The shortage of stock on the market in many parts of the UK has triggered the price rise - rather than a sudden increase in the number of buyers able to get the finance they need.
"The real indicator of the health of the housing market is the number of sales actually taking place and this makes for gloomier reading when compared to last year, with transactions down over 10%. Securing a mortgage is still the main obstacle preventing first-time buyers getting on the property ladder. Until this situation improves, we wont see a concerted improvement in transactions and house prices outside London. In the capital, huge demand for prime property boosted house price increases beyond that seen in the rest of the country. With buyer activity going from strength to strength in boroughs like Kensington & Chelsea, the 'summer lull' often expected in August hasnt materialised, and we expect prime prices to continue on their upward trajectory as the year progresses."