Residential property prices in England and Wales have reached a five-year high, according to the latest index from Home.co.uk. Average asking prices now stand four per cent greater than this time in 2012. In July, the mix adjusted average asking price stood at GBP 241,710. This is a rise of 0.6 per cent month-on-month and a continuation of the current trend for steady rises.
Growth is taking place across the entire UK, but there remain considerable regional variations. Unexpectedly, prices are skyrocketing in London at a rate more than two times greater than any other area. The poorest performance can been seen in northern regions, Wales and Scotland. In particular, the north-west proved to be the weakest region, posting a 0.2 per cent price fall.
A lack of supply is continuing to be an issue for the property market, with the volume of new properties entering the market in June down 4.4 per cent overall on June 2012. However, Home.co.uk notes that stock trends vary greatly across the country. In the Midlands, Yorkshire and the north-east, new stock has increased significantly. This has a negative effect on price growth. This is in direct contrast to greater London, where price hikes have been driven by a 22 per cent drop in stock.
Nonetheless, the housing market appears to be recovering at a pleasingly steady pace. In fact, June was the 20th consecutive month annual price growth has been recorded. The average house price is now just GBP 4, 441 lower than peak values recorded in August 2007. Home.co.uk claim that if this continues, by the end of the year the 2007 peak could be surpassed. However, in real terms a return to pre-recession values isn't expected until 2021.
Polarisation of the market is also expected to continue, thanks to slow rates of price growth in poorer regions. In Wales, the north-west and Scotland values have fallen by 8.3 per cent, 8.6 per cent and 8.9 per cent respectively. This has plunged many property owners into negative equity.
Does your property value fit the trend? Learn more about average house price statistics
- Wednesday 17 July 2013