28
Jul
House prices 'now at 2006 levels'
House prices in England and Wales are now at similar levels to
those seen in the summer of 2006, according to the Land
Registry.
However, property values crept up by just 0.1% from May to June,
taking the average cost of a house to £166,072.
Prices were 8.4% higher than a year ago, marking the eighth
consecutive monthly rise in year-on-year prices.
Various commentators have suggested that house prices are likely to
remain relatively static in 2010.
The Land Registry's survey is widely regarded as the most
authoritative, although it only covers England and Wales.
Regional breakdown
All regions of England and Wales have seen average property prices
rise in the year to June, the Land Registry said.
The highest increase was in London - up 12.2% - with the
smallest in the North East of England - up 0.7%.
However, the North East has seen typical house prices drop by
1.3% in the month from May to June. The highest month-on-month rise
was in Wales, up 2.9%.
Over the last year, the value of semi-detached homes has
accelerated faster than other types of property, up by 9.6%, ahead
of detached homes, up 9%, and flats, up 8%.
The latest figures from HM Revenue and Customs show that the
number of homes sold in the UK in June rose by 21% from May to
86,000. The sales figures were the highest this year and were up
15% on the same month last year.
A general rise in house prices, which started in the spring of
2009, seems to have reached a plateau this summer, according to the
most recent surveys from the Nationwide building society and the
Halifax bank.
Forecasts
Extra austerity measures could reduce people's confidence about
buying homes, according to Howard Archer, of IHS Global
Insight.
"The only marginal house price rise in June reported by the Land
Registry maintains our belief that house prices will fall back over
the latter months of 2010 and very likely soften further in 2011,"
he said.
In real terms, house prices could fall by 8% from now to 2015,
according to a report by the National Institute of Economic and
Social Research (NIESR).
"While we have assumed the housing market remains stable, there
remains the risk that house prices in the UK could decline at a
more rapid pace," the report said.
"By 2015, real house prices are expected to fall back only to
the level of 2003."
A separate forecast published earlier this months by accountants
PricewaterhouseCoopers suggested that house prices might not reach
the levels seen at the peak of the market for another decade