We take an in depth look every other month at what the property price reports are telling us. They tend to measure the market at different times and also in different ways – which is why some indices give average prices of under £200,000 and other’s over £200,000! It’s not the number that is so important, it’s really what the trend is – whether that’s up or down and what’s impacting the market.
What's happening with property prices right now?
The Nationwide reported average property price of £188,374 for September 2014, which is up around 9.5% year on year, when compared to the same time last year.
The Land Registry average price for August 2014 of £177,824, a year on year increase of 8%.
The Acadata reported average property prices in September 2014 are £275,820, which is up 10.6% year on year.
What's happened over the last year?
‘Average property’ prices for mortgaged properties started off at £ £162,245 in January 2013 and are now at £188,374 having dropped back slightly from August for Nationwide (Sept 2014).
Land Registry’s average sold prices (including some cash sales) started at £161,795 in January 2013 and are now at £177,824 (Aug 2014).
Acadata’s average property prices for all properties started off in January 2013 at £227,478 and have now reached a high of £275,820 (Sept 2014).
What's happening to property prices in the different UK regions this month?
Acadata’s Scottish index suggests average house price growth is slowing up, together with slowing supply. Gordan Fowlis, Regional Managing Director of Your Move, part of LSL Property Services, comments: “A favourable lending environment boosted demand over the summer. There were 9,285 transactions in July, climbing 5% up from June to reach the highest monthly total since July 2008. And this propelled prices to new peaks in July in some of Scotland’s centres of employment. Aberdeenshire and Edinburgh have seen transactions soar 20% and 25% respectively over the past year. But on the other side of the coin, uncertainty is leaving its trace – and squeezing supply has seen slower overall transactions growth compared to last year
Although the Welsh property market is slowly showing signs of improvement, with year on year prices increasing by just under 3.5%, prices remain some way off the height of the market, currently standing at -16% down on 2007/08.
Over recent months, there have been some improvements with property prices in Northern Ireland, with a 6.8% increase year on year, but prices are still -44% lower than the height of the market in 2007/08. Whilst this is tough for sellers who purchased their properties around five or six
London and the South East are the only regions to have exceeded their previous high of 2007/8.
The East has now reached its previous high.
The East Midlands, West Midlands and the South West improving, but are still down against the 2007/8 high by between 6% and 12%.
The North East, North West and Yorkshire and Humber property prices remain between 16% and 22% below 2007/8 heights.
Kate Faulkner’s Market Commentary:
“It shouldn’t be a great surprise that prices are slower as this time last year is when prices started to rise across the UK, so a rise versus a rising market is bound to minimise growth. The reality is 18 months into a market turnaround, pent up demand is waning and prices are started to return to 2007 heights – the level people struggled to afford in the past. The big question moving forward is whether the market will now be held back by affordability and restricted mortgage lending and what long term impact this will have on the property market.”
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