Growth in the UK property market shows no sign of slowing down, according to the latest data from the Land Registry.
Average property prices across England and Wales rose 6.4% last year to reach a new high of £188,270. Prices rose 1.2% on a monthly basis.
The biggest annual rise was in Reading, which experienced an increase of 17.1%. Hartlepool recorded the most significant annual price fall with a movement of -3.3%
Unsurprisingly, London saw the greatest average rise in property values in 2015, with a rise of 12.4%. The capital also experienced the greatest monthly growth with an increase of 2.1%.
The number of completed house sales in England and Wales fell by 8% last year to 79,960, compared to 86,452 in October 2014.
The lowest annual price growth was in the North East, with an increase of 0.8%.
Jeremy Leaf, a former RICS chairman and north London estate agent, said the decline in number of property transactions “continues to be a worry”.
He said: “If people aren’t able to move in and out of the market when they want to, there will be an inevitable knock-on effect for the rest of the economy. With the high cost of moving, continued shortage of supply and affordability issues with tougher mortgage criteria, this situation looks unlikely to change any time soon.
“While the increase in London property prices highlights the shortage of housing in the capital, the biggest hike in values in the past 12 months was in Reading, where prices are rising because of its commutability. Buyers are finding better value than in London although if property prices continue to rise at the same pace that may no longer be true. With trains taking only half an hour into Paddington, you can get there faster from Reading than the suburbs, while living in parts of Berkshire will mean a reasonable quality of life.”
Separate figures from the ONS also revealed that private rental prices paid by tenants in Britain rose by 2.5% in the year to December.
Last year, rents grew by 2.7% in England, 0.9% in Scotland and 0.7% in Wales.
Rental prices rose across all English regions in the year to December 2015, increasing the most in London (3.9%).
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