The average house price in England and Wales cost £177,299 in September, only 2.2 per cent less than November 2007’s peak of £181,324, data from the Land Registry has revealed.
Its latest monthly house price index showed that there was an average annual growth of 7.2 per cent in September, however house prices have fallen 0.2 per cent since August.
On a regional scale, London experienced the highest annual increase in property value with a movement of 18.4 per cent in the 12 months to September, compared to just 1.4 per cent annual price growth for houses in Yorkshire and The Humberside.
Merthyr Tydfil saw the greatest annual price fall with a movement of -6.5 per cent.
September saw a monthly fall of 0.7 per cent for London, although the annual change is still considerably higher than for other regions. The average price of property in the capital is £460,521.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: ‘The London property market is finally starting to run out of puff as far as the Land Registry is concerned, with a 0.7 per cent drop in prices in September compared with August.
“Lenders are keen to do plenty of business in the run-up to the end of the year regardless of any change in sentiment among buyers and continue to up the ante by offering ever cheaper fixed rates.
“There is not yet any sign of a relaxing of criteria, with a significant proportion of borrowers struggling to get a mortgage because they are older, require interest only or are newly self employed.”
The number of properties sold in England and Wales for over £1m increased by 19 per cent to 1,439 in July 2014 from 1,207 in July 2013. The same figure for London was up by 17 per cent to 989 this July, from 846 for the same period last year.
From April 2013 to July 2013 there was an average of 64,317 property sales per month, while during the same period in 2014, the figure was 75,950.
Peter Rollings, chief executive of estate agent Marsh and Parsons, commented that house prices rises are flattening on a monthly basis, as growth relaxes after a rousing first half of the year.
“But considered as a whole, the UK property market is still on an upward trajectory and prices have seen a considerable uplift in the past year.
“London’s economy thrives on its global standing as an unbeatable destination both to live and to do business and talk of a ‘mansion tax’ and other populist wealth taxes threatens to erode this reputation.
“The uncertainty surrounding these proposals could shake the foundations of London’s property market as the political rhetoric picks up ahead of May’s general election, and we’d enter dangerous territory which could filter down to all sections of the market if these buyers packed up and turned their attentions elsewhere.”
peter.walker@ft.com
