Average house prices in England and Wales rose year-on-year in December by 1.7 per cent and on a monthly basis by 0.8 per cent, according to the Land Registry.
This takes the average cost of a home to £162,080 but regional differences are wide. The December data for London shows a positive monthly price change of 3.1 per cent and the annual rise is 8.4 per cent, which is considerably higher than other regions.
The average price of property in the capital is £371,223 in comparison with the North East where the annual house price has fallen by 3.5 per cent to £99,974, the lowest in England and Wales.
County level
On a county and unitary authority level, Merthyr Tydfil experienced the greatest annual price rise in December up 20.3 per cent, while North East Lincolnshire saw the greatest annual price fall with a movement of -9.5 per cent.
Greater London experienced the strongest December monthly growth with an increase of 3.1 per cent and Hartlepool saw the most significant monthly price fall of -6.8 per cent.
Metropolitan districts
The metropolitan district with the largest annual price increase was Salford, rising by 6.8 per cent and Doncaster saw the highest monthly price rise of 1.8 per cent.
The most significant annual and monthly price falls were in St Helens at -7.8 per cent and -3.7 per cent respectively.
Sales volumes
In the months July to October 2012, sales volumes averaged 57,661 transactions a month. This is a decrease from the same period a year earlier, when sales volumes averaged 62,073 a month. Over the past 31 months the number of transaction has been relatively consistent.
The number of properties sold in England and Wales for over £1 million in October 2012 increased by 14 per cent to 623 from 548 in October 2011; in London £1 million plus properties increased by 25 per cent to 420 from 337.
Comment
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “December property prices edged higher, helping push the annual average figure into positive territory. However, the national average masks significant regional differences, with prices falling in parts of the country and London continuing to outperform the rest. We expect this situation to continue this year.
“On the lending front, the picture is much more positive with some of the cheapest mortgages ever seen. Lenders continue to cut rates and offer more choice at higher loan-to-values. Lending volumes are slowing ticking up month by month, with renewed vigour from lenders keen to do more lending this year than last.
“There is a lot riding on the government’s Funding for Lending scheme in terms of opening up the market and making it easier to buy if you have a more modest deposit. It is no overnight solution but a slow burner, yet the early signs are encouraging.”
