Housing market stable across UK although London still lags

UK house prices grew by 4.9 per cent in the year to the end of June according to the government’s official index. 

This is a tiny 0.1 per cent lower than in the year to the end of May; although the annual growth rate has slowed since mid-2016 it has remained broadly around five per cent. 

The June data produced by the Land Registry shows the average residential property value now hitting £223,257, but with significant regional differences.

In England, an annual price increase of 5.2 per cent which takes the average property value to £240,325. Monthly house prices have risen by 0.8 per cent since May.

For Wales the price rise over the year was 3.6 per cent taking the average property value to £151,672. Monthly house prices have risen by 2.9 per cent since May.

Meanwhile in London there was an annual price increase of 2.9 per cent and the average property value is now £481,556 - this is after a 0.7 per cent drop since May.

Statistics about deals released at the same time show that in June the seasonally adjusted number of transactions completed in the UK with a value of £40,000 or above fell 3.3 per cent drop during June itself, compared with May.

The number of completed house sales in England in April - the most recent data available - rose by 1.6 per cent to 53,410 compared with 52,590 in April 2016; in Wales the rise was 9.9 per cent to 3,101 compared with 2,822 in April 2016; and in London the number of completed house sales rose by 1.3 per cent to 5,823 compared with 5,746 in April 2016.

Graham Davidson, managing director of buy to let specialist Sequre Property Investment, says the figures reflect “a wholly resilient market in England”; he says there is “fierce competition for property in key northern cities such as Manchester and Liverpool.”

Meanwhile Jeremy Leaf, north London estate agent and former RICS residential chairman, says: “These figures show a fairly stable market at a time when we might have expected more nervousness among buyers and sellers. What we are seeing on the ground is a determination to get on with property transactions even if that means negotiating harder to make sure they go through.”

Nick Leeming, chairman of Jackson-Stops & Staff, says: “With average London prices standing at nearly half a million, the capital is the only region to see prices fall on the month. London is travelling in reverse. Prohibitive levels of stamp duty land tax continue to have a profound impact on market fluidity for higher value properties.”