House prices return to August 2007 levels

House prices in England and Wales have risen for 11 months in a row to put the average house price back at levels last seen in August 2007.

The latest house price index from Acadametrics, based on actual transaction prices and using Land Registry data, shows the average house price in March stands at £227,788.

Acadametrics estimates that the average price of property transactions in March was 1.1% higher than in February and is up 13.4% compared to the same time last year.

There were approximately 10,000 more homes sold in February than in January, but February’s monthly total of 45,000 transactions is below the 51,570 monthly average for 2009.

The average house price in London has climbed to £376,605, a record high.

Dr Peter Williams, chairman of Acadametrics, says: “Transaction numbers remain relatively low such that small pockets of demand can exert a higher influence on price than one would see in a more active market.

“This might also explain some of the differences between this index and mortgage-based indices.

“We have noted that in all the high value areas prices have increased but transaction levels have remained fairly constant.

“This would either suggest that prices in these areas have actually increased, or that the higher value properties in these areas have been changing hands more frequently than is the norm – it may well be a combination of the two factors.”