29
Sep
House Prices Edge Up According To Land Registry
Wednesday 29th September 2010
House prices in August edged up just 0.3%, according to the Land
Registry, suggesting the market may be stronger than otherwise
reported.
The average house price now stands at £167,423.
The Land Registry also reported on its latest transaction level
figures, covering the three months from March to June. It said that
sales in England and Wales averaged 53,089 per month, up from
43,825 per month for the same period in 2009.
House price rises across the country were not uniform. While the
Land Registry recorded rises in five regions – Wales, the
south-east, London and Midlands – it recorded falls in
another five – the south-west, north-east, north-west, east
and in Yorkshire and the Humber.
Industry veteran Nicholas Leeming, commercial director of
Zoopla, said: “The Land Registry index is more comprehensive
because it tracks all home sales, not just a small sample of those
who need mortgage finance.
“The slight increase in prices is therefore a sign that
the market is less weak than some are suggesting. But there is no
room for complacency.
“Mortgage volumes are down as lenders conserve cash to
meet wider regulatory requirements. Confidence in the economic
recovery is shaky as spending cuts loom. Buyers are being cautious
at a time when the supply of homes for sale has been rising, and so
we expect relatively subdued trading to continue.”
Peter Rollings, managing director of London estate agent Marsh
& Parsons, said: “The misapprehension that house prices
are falling has led to some home owners hesitating about putting
their properties on the market in the past couple of weeks, but the
official price figures from the Land Registry – based upon
actual sales and not asking prices – shows that these
concerns are unfounded, particularly in London.
“Whereas the severe shortage of mortgage funding on offer
is stifling demand from buyers in certain parts of the country,
interest from buyers in the capital has remained consistently
high.
“The large proportion of cash buyers – unaffected by
issues in the mortgage market – and overseas buyers has
helped London to withstand the problems witnessed in other markets
across the UK.
“The market traditionally sees a pick-up in autumn, and
assuming that the supply of property does not dry up completely,
this should help drive activity levels further throughout the
remainder of the year.”