House prices in England and Wales close to 2007 peak
According to the Land Registry’s House Price Index, average prices in England and Wales are now just £3,500 short of their 2007 peak. In August, average house prices rose by 8.4% (annually) to £177,824, compared to £181,383 in November 2007.
Much of the increase was due to the London property market, which has been booming.
August’s rise over July, however, at 1% was much more modest in England and Wales. In the capital, London, prices rose 2.7% in August from July.
Over a 12-month period ending in August 2014, house prices in London rose 21.6%. The average price of a home in London in August was £467,070.
The North East of England posted the smallest growth (3%) for the 12-months ending in August.
A growing number of young adults are living with their parents because houses are too expensive’ it has also become harder to get a mortgage.
Below are some home price data for different regions in England and Wales published by the Land Registry:
- London: Monthly change 2.7%, Annual change 21.5%, Average price ₤467,070.
- South East: Monthly change 1.7%, Annual change 11.6%, Average price ₤238,119.
- Yorkshire & The Humber: Monthly change 1.6%, Annual change 4%, Average price ₤121,466.
- East: Monthly change 1.5%, Annual change 10.6%, Average price ₤195,463.
- East Midlands: Monthly change 0.7%, Annual change 5.9%, Average price ₤131,171.
- North East: Monthly change 0.6%, Annual change 3%, Average price ₤100,781.
- Wales: Monthly change 0.4%, Annual change 3.4%, Average price ₤118,814.
- West Midlands: Monthly change 0.2%, Annual change 4.4%, Average price ₤135,637.
- South West: Monthly change 0.1%, Annual change 5.8%, Average price ₤183,991.
- North West: Monthly change 0.1%, Annual change 4.2%%, Average price ₤113,269.
According to the Land Registry, in June 2014, all regions experienced a decline in the number of repossession sales when compared with June 2013. The East saw the greatest fall.
More than 82,600 properties in England and Wales lodged for registration (as dwellings) in August, with a price range of between £13,000 and £24.5 million.
Most property economists and realtors in the UK are saying that despite the strong Land Registry Data, house prices will probably grow much more moderately over the coming months.