Average home now costs £200,000

The average house in England and Wales now costs more than £200,000, figures from the Land Registry show.

Its latest quarterly report, which studies sales between July and September, shows that the average price rose to £211,453, up 9% on the year.

The most expensive county in which to buy a property was Surrey, where prices averaged £351,000.

But prices were higher in nine London boroughs, with properties in Kensington and Chelsea costing £942,000 on average.

The Land Registry recently laun-ched its independent House Price Index which uses a new method of calculating the average house price. This only counts properties that have been sold more than once over a period of time.

The index, which has been created using Calnea Analytic’s automated valuation model, is based on the repeat sales regression method which only takes account of houses that have been bought or sold more than once. This method is the dominant method in the US, and is used to construct that country’s national house price index.

Ted Beardsall, deputy chief executive of the Land Registry, says: “The Land Registry provides the most complete set of house price data for England and Wales.

“We believe that our index is more timely and will become the authoritative and most accurate reflection of average house price movements in this country.”

Martin Ellis, chief economist at Halifax, says: “In many ways it is reassuring that both Land Registry’s index and ours have found similar results, but ultimately the former index has problems.

“The Land Registry index is less timely and its information is slow to correlate by its nature. This is detrimental in a changing industry. It also misses out new homes, effectively ignoring 12% of the market.”