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Property prices increase again

Property prices increased 1.7% to £155,885 in July, marking the second consecutive monthly increase this year, according to the Land Registry.

However, the Registry's House Price Index for July, out today, reveals that prices declined 11.7% year-on-year.

On a regional basis, London property prices also increased for the second consecutive month, up 1.6% in July, though down 10.2% on the year to £306,963. Prices in Wales have increased the most on the month (3.1%) and declined the least on the year (8.3%) to £123,122 while prices in Yorkshire saw the smallest increase, up 0.9% to £122,555 in July. Prices in the North East declined the furthest on the year, down 13.2% to £109,776.

Within the regions, prices in Luton saw the largest annual decrease, with prices down 22.5% to £118,195 while on a monthly basis, prices in Conwy increased the most, up 3.7% to £138,307. In London, property prices increased the most in Tower Hamlets last month, up 3.1% to £320,475. On an annual basis, property prices in all areas of the capital fell, with those in Barking and Dagenham have fallen the furthest, down 20% to £197,884.

The number of sales of property priced over £1m across England and Wales decreased 47% in the 12 months to May, down from 453 to 242; the only price bracket to see an increase in transactions was the sub-£50,000 bracket, with sales up 50% to 760.

Overall sales volumes declined to 35,848 between February and May from 61,743 in the same period a year ago.

Nicholas Leeming, director of Propertyfinder.com, says: “House prices are on their way up and this is a welcome boost for homeowners, particularly those blighted by negative equity. Interest from buyers is booming as people look to snap up bargains before prices rise further.

“But the news is not universally positive. First-time buyers have been tempted by more affordable prices, but lenders’ unwillingness to lend to them has left most powerless to act. Amid the positive news, it’s crucial that more is done to help first timers get onto the property ladder – or see homeownership out of reach for an entire generation.”

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