Sales surge 9 per cent in October

The property market shrugged off the slowdown in October, driven by an uplift in activity outside of London.

According to the LSL house price index for England and Wales, house sales were up 9 per cent, with the highest number of completed home sales in seven years.

Prices climbed 0.7 per cent (or £2,026) between September and October, bringing the average England and Wales house price to £277,390, LSL says. That represents an annual increase of 10.5 per cent, or 5 per cent when London and the South East are excluded. However prices at the top end of the London market actually fell over October.

David Newnes, director of Reeds Rains and Your Move estate agents, says much of the uplift was due to sales that had been sitting in the pipeline for some time finally being completed.

“The biggest uplift in completions in Q3 2014 compared to Q3 2013 has been witnessed outside of London – completed house sales in both the West Midlands and East Midlands have risen 22 per cent, while in London house sale completions are up by just 3 per cent over the same period.

“In regions such as the North and East Anglia, which saw average house prices slump during September, further growth in activity is critical to warm up the local recovery. First-time buyers in particular need shielding from any future cooling interventions from the government or Bank of England.”

He adds: “At the very top end of the housing market in Prime Central areas of London, growth is subsiding. Average house prices across London overall rose by only 0.4 per cent in September – the smallest monthly increase the capital has seen for 15 months.”

But while property prices in the most expensive areas dropped over October, lower-priced boroughs such as Lewisham and Haringey continued to see price increases, Newnes says.