May to June saw no change in the average house price, according to the latest Land Registry data.
However the June figures from Land Registry’s House Price Index show an annual price increase of 6.4 per cent, which takes the average property value in England and Wales to £172,011.
That compares with the peak of £181,466 in November 2007.
Data for London shows a very slight monthly increase in June of 0.1 per cent – but annual change for London is still considerably higher than other regions at 16.4 per cent.
Brian Murphy, head of lending at Mortgage Advice Bureau, says many potential buyers appear to be “losing their nerve” in the face of rising prices and looming base rate hikes.
“However, today’s Land Registry data suggests consumers should think twice before shying away from the property market, as average house prices stayed stable in June and remain £10,000 lower than their peak in November 2007.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, says the Land Registry data points to the market slowdown agents have been seeing over the past few months.
Harris says with a number of lenders cutting their fixed rates in the past week, borrowers can still get good mortgage rates – “assuming [they] meet the tighter mortgage market review rules”.
“Those who are worried about interest rate rises can protect themselves by taking out a five-year fixed rate and with pricing starting at a little over 3 per cent, historically that is excellent value.”
