November house prices down 0.6%
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House prices were down 0.6% in November, shows the latest data from the Land Registry.
But house prices rose 2.2% annually, which takes the average property value in England and Wales to £164,773.
Seven regions in England and Wales experienced increases in their average property values over the last 12 months.
The region with the highest annual price change is London with an increase of 6.8%. London also experienced the greatest monthly rise with an increase of 0.4%. The region with the greatest annual price fall is Wales with a movement of -3.3%.
Wales also experienced the most significant monthly price fall with a movement of -3.4%.
The most up-to-date figures available show that during September 2010, the number of completed house sales in England and Wales dropped by 6% to 55,068 from 58,430 in September 2009.
The number of properties sold in England and Wales for over £1m increased by 24% between September 2009 and September 2010, from 552 to 686.
Paul Hunt, managing director of Phoebus Software says: “Another dip for house prices indicates that lender confidence remains shaky. They are seriously concerned about the impact of higher taxes and lower public spending in the New Year. Lenders are therefore being pre-emptively
cautious about the ability of borrowers to pay back loans during the coming months. Nevertheless, the market is in better shape than in 2009.
“Average prices and sales volumes are up year on year and the pace at which prices are dropping hardly represents a house price crash. At the
moment, it is the mortgage drought that is causing prices to fall, not a shortage of buyers seeking finance. Although there are some very strong
headwinds facing the market in 2011, price growth could return if borrowers’ finances hold up and lenders respond by loosening their criteria.”
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