Land Registry figures: prices strong but transactions slump

Land Registry data shows that homes across the UK have risen in price by an average 5.8 per cent in the year to February - but the most startling figures reveal the scale in the slump in transactions.

February data from the registry shows that the average property value in the UK increased to £217,502.

For England alone, the February data shows an annual price increase of 6.3 per cent which takes the average property value to £234,466; Wales saw an annual price increase of 1.8 per cent which takes the average property value to £145,293. 

Despite its difficulties in prime central pockets, London as a whole shows an annual price increase to February of 3.7 per cent which takes the average property value to £474,704. - although this 0.9 per cent less than in January.

However, the number of completed house sales to December 2016 - the latest figures available from the registry - show major falls over the same month a year earlier. 

Some of this is down to the late 2015 market being influenced by transactions aiming to beat the stamp duty surcharge deadline, but much of this did not impact the market until the first quarter of 2016.

So the new Land Registry information reveals that in England in December 2016 transactions fell by 19 per cent to 65,064 compared with 80,367 in December 2015. 

The number of completed house sales in Wales fell by 6.9 per cent to 3,845 compared with 4,129 in December 2015.

In London the slump was still more dramatic - completed house sales in London fell by 31.3 per cent to 6,665 compared with 9,700 in December 2015.

Yesterday we reported a Savills forecast that transaction volumes would remain relatively low throughout 2017.