The region in England and Wales which experienced the highest increase in its average property value over the last 12 months is London with a movement of 4.2 per cent. Wales experienced the greatest monthly rise with a movement of 2.0 per cent. The North West experienced the greatest annual price fall with a decrease of 3.5 per cent. The North East saw the most significant monthly price fall with a decrease of 2.6 per cent.
The most up-to-date figures available show that, during December 2011, the number of completed house sales in England and Wales increased by 8 per cent to 61,470 compared to 56,875 in December 2010. The number of properties sold in England and Wales for over £1 million in December 2011 decreased by 13 per cent to 488 from 559 in December 2010.
Paul Hunt, managing director of Phoebus Software said: “The modest rise in house prices last month is a vindication of the proactive approach mortgage lenders have taken over the last few months. The CML announced recently that gross mortgage lending has risen for seven consecutive months as the combination of low interest rates and steady house prices have provided an opportunity to lenders to make highly affordable finance available to a growing number of house purchasers.
“But we’re not out of the woods yet. On an annual basis, property prices are still falling and the return of stamp duty for first-time buyers, as well as the hefty levy on properties at the top end of the market announced in the budget will put downward pressure on property values. Whether lenders are able to maintain their confidence in the UK’s mortgage borrowers in a more hostile fiscal environment is by no means certain. But the MPC’s ongoing commitment to a doveish monetary policy and the implementation of the government’s New Buy scheme provide good grounds for optimism that buyers will continue to be able to access the finance with which to support prices”.
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