House prices still rising says CLG (16/02/2010)

The latest house price index from Communities and Local Government (CLG) released today records that prices rose 0.2 per cent between November and December 2009, and by 2.9 per cent in the quarter ending December 2009. This compares with a rise of 3.1 per cent for the quarter ending in September 2009.
   The mix-adjusted average house price in the UK stood at £ 200,307 in December 2009 (not seasonally adjusted). These rises will provide some hope for those buy to let investors and homeowners who remain in negative equity having bought at the peak of the property boom in 2007, though adverse lending rates continue to act as a break on life on new property purchases.

    Annual average house prices rose in England (3 per cent), Scotland (3.8 per cent) and Wales (1 per cent), but fell in Northern Ireland (-6.0 per cent). The annual house price rates of change in England ranged from 0.8 per cent in the East Midlands to 4.9 per cent in London. The annual growth rates in the other regions were 1.7 per cent in the South West, 2.1 per cent in Yorkshire and the Humber, 2.6 per cent in the West Midlands, 2.8 per cent in both the North West and the South East, 2.9 per cent in the East and 4 per cent in the North East. The rise in annual house price rates for the North East is notable as it is the first rise for this region since May 2008.

    Average mix-adjusted house prices in December 2009 were £206,694 in England, £150,481 in Wales, £160,249 in Scotland and £175,170 in Northern Ireland. The English region with the highest average house price in December remains London at £316,695. The lowest average price was in the North East at £140,551.


By Andy Stern

© Property Owners Directory 2010