December house prices up 1.1% since November

The December data from Land Registry’s House Price Index shows an annual price increase of 4.4 per cent which takes the average property value in England and Wales to £167,353.

The monthly change from November to December shows an increase of 1.1 per cent. Repossession volumes decreased by 31 per cent in October 2013 to 1,129 compared to 1,636 in October 2012.

The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with a movement of 11.2 per cent

London also experienced the greatest monthly rise with a movement of 2.6 per cent.

The only region with an annual price fall is the North East with a decrease of 0.1 per cent.

Yorkshire & The Humber saw the most significant monthly price fall with a movememt of -1.2 per cent.

The most up-to-date figures available show that during October 2013 the number of completed house sales in England & Wales increased by 21 per cent to 71,929 compared with 59,213 in October 2012.

The number of properties sold in England and Wales for over £1 million in October 2013 increased by 40 per cent to 913 from 651 in October 2012.

The region with the greatest fall in the number of repossession sales were the East Midlands and the South West.

David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, comments:

“While the economy is growing in strength and edging its way towards recovery, the housing market is building on the strong momentum sustained last year. The recovery has spread far and wide with nearly all regions recording consistent annual price growth –  a pollination of positivity throughout the UK. But London is still way out in front with prices rising more than double the pace of the nationwide average.

“Help to Buy continues to energise the property market, while surging demand and increasing competition for available property will no doubt carry on supporting steady price growth in the year ahead. However, there is still a chorus of concern about the lack of housing stock including new homes coming onto the market which could lead to demand outstripping supply and some buyers being priced out of the housing market. But at this stage we are not seeing a house price bubble on the horizon.

“The crux of the matter is simply we need more homes to allow the property and mortgage markets to prosper fully. Thankfully the government has already begun to take heed, and outlined initiatives to ease some of the pressure. The hope is that these are put into practice and we see a real boost in housing supply this Spring and beyond. With the improving economy and more positive news everywhere potential sellers that have been locked into their current homes with a fear of job losses or escalating interest rates are starting to become more confident about the longer term outlook and register as potential buyers and thinking about moving. These homes coming available on to the market are as important as the growth in new homes to stimulate some more volume in the housing market”.

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