More data have revealed further evidence of a property market slowdown with completed home sales down 9 per cent compared to a year ago, although property prices have now exceeded a peak reached before the crisis in February 2008.
The average property price in England and Wales hit £273,528 last month, meaning they are now £34,192 higher than at height of the housing boom in February 2008, according to LSL Property Services monthly house price index.
Over half of that value was added in the last year alone, following an annual rise of 6.8 per cent. However, this is the smallest annual increase witnessed for 14 months.
The data chimes with the latest Land Registry house price index, which showed that in January average house prices were just £2,000 less than the peak of the market.
Completed home sales in the opening two months of this year were also 9 per cent down compared to a year ago, the LSL data showed.
Adrian Gill, director of Reeds Rains and Your Move estate agents, said: “We’re performing well by yesterday’s standards, but we’ve got to keep an eye on the trajectory of our current recovery.
“So far in 2015, completed home sales are 9 per cent lower than over the same period twelve months ago, but demand hasn’t faded out of view.
“February still marks a 4 per cent improvement on January activity levels, and in recent weeks, we’ve seen agreed sales climb above 2014 levels, as activity comes into focus.”
He also flagged up that property market conditions have calmed in London and the south-east. Data from the Royal Institution of Chartered Surveyors, published yesterday (12 March), backed this up, stating that London was the only place in the UK where more surveyors reported price declines rather than increases in February.
Mr Gill said London and the south east’s combined lead hit a “summer-peak” in July 2014 – when this corner of the country hoisted the wider England and Wales annual change to 5.4 per cent higher than it would have been otherwise.
“But in February this growth gap has fallen to less than half its former glory, to only 2.2 per cent. Annual house price growth in England and Wales stood at just 4.6 per cent in February excluding these weighty regions.”
He added that the north saw the smallest annual uplift with home values just 1.9 per cent higher year-on-year, while in Yorkshire and the Humber prices stagnated over the month.
“The housing shortage may be propping up property price growth, but more needs to be done to stave off this winter lull and invigorate the property market recovery.
“It’s pivotal that the chancellor recognises the importance of expanding the UK’s property stock in the upcoming Budget.”
donia.o’loughlin@ft.com
