Home prices in England and Wales are now higher than during peak trading periods before the crisis, according to the latest house price index of LSL Property Services.
The average house price in February 2015 (£273,528) was by £34,192 above the pre-crisis high recorded in February 2008.
Even so, the property market currently is quite cool. There was improvement from January to February with prices increasing by 0.5 per cent. Compared to a year ago, prices in February were 6.8 per cent higher but this is the smallest annual increase in 14 months.
Also, the completed home sales in January and February have dropped by 9 per cent compared to last year.
London continues to be a driver for prices: Although prime property transactions have slowed in the run-up to the General Election, other parts of the market in the capital continue to grow.
“The capital has already had the first taste of added pressure placed on prime property in the form of revised Stamp Duty, and the £1.5m to £5m slice of the market has also been hit by cold feet in the run up to the General Election, with the threat of a potential mansion tax. This let-up of high-end activity has brought down the average London house price, but beneath the surface, the lower rungs of the ladder are thriving. For instance, the borough of Newham – where the typical property value currently stands at £273,727 – saw an enviable 2.1% monthly price rise, more than double the overall 1.0% average London price jump. In terms of annual growth, more affordable areas like Barking and Dagenham (+16.5%), Bexley (+15.6%) and Waltham Forest (16.8%) are punching well above their weight, coming in ahead of the year-on-year improvements seen in high-end areas like Kensington and Chelsea, where prices have fallen 7.4% in the past twelve months, “Adrian Gill, director of Reeds Rains and Your Move estate agents, commented.
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