28
Aug
House prices rise most since 2004
House prices in England and Wales rose by 1.7% in July compared
with June - the biggest monthly leap in value since July 2004, the
Land Registry said. Every region recorded a monthly rise in prices,
with the average home valued at £155,885, the analysis found.
But prices were still 11.7% lower in July than they were in the
same month a year earlier and sales were also down. The annual drop
in prices was sharpest in the North East of England but at its most
shallow in Wales. The Land Registry, which records all completed
property sales in England and Wales, is widely regarded as
producing one of the most authoritative house price reports,
although it does lag behind data from lenders. It compares the
price of properties sold now with the price paid when they were
sold previously. However, repossessions and property transfers
following a divorce are excluded from the sample.
Slowing rate
The annual fall in prices eased in July compared with June, when
the year-on-year drop stood at 13.8%. This was at the lowest level
in July since October last year.
The recovery in the housing market has been revealed in a series of
surveys in recent months, including the Nationwide building
society's index, which this week revealed prices had risen by 1.6%
in August compared with July. This has proved to be bad news for
tenants, who have seen rent levels rise again as former "reluctant
landlords" put their homes back on the market. However, the number
of transactions remains relatively low, with some experts
suggesting rising prices could stall if there is a surge of
properties coming back onto the market. There were an average of
35,848 sales per month between February and May this year, compared
with 61,743 in the same period a year earlier.
BBC News. (2009). House prices rise most since 2004. [Online].
Available from: http://news.bbc.co.uk/1/hi/business/8226416.stm
Accessed 28th August 2009.