House prices up 0.6%

The October data from Land Registry’s House Price Index has revealed a monthly house price rise of 0.6%. This marks the fifth month in a row in which the movement has been above 0%.

The annual change stands at -3.4%. This is the sixth month in a row in which the fall in annual change has decreased. The average house price in England and Wales is now £159,546.

All regions in England and Wales experienced a decrease in their average property values over the last 12 months. The region with the most significant annual price fall was the West Midlands with a movement of minus 6.3%. The North West experienced the greatest monthly rise with a movement of 1.9%. Wales was the region with the most significant monthly price fall with a movement of minus 2.3%.

The most up-to-date figures available show that during August 2009 the number of completed house sales in England and Wales rose by 11% to 53,236 from 48,109 in August 2008. Transaction volumes, while no longer falling at 2007 rates, remain relatively low.

Commenting on the figures, Oliver Gilmartin RICS senior economist said:

“House prices continued to move higher by 0.6% at a national level consistent with all the major indices with the level of transactions continuing to improve. However, there remains a wide variation in the strength of the pricing recovery between the regions. Average house prices in London grew at over £4000 during October whilst Wales witnessed price falls of over £2000. House prices are set to rise further in the coming months supported by an ongoing shortage of property listings relative to demand.”

“That said, renewed challenges are set to face the market in 2010 particularly in some regions where unemployment will remain elevated. In particular, the ending of the extended zero band on stamp duty in the new year could have a disproportional impact on those markets outside London and the South East.”