On a year-on-year basis prices have increased by just 1%.
David Brown, commercial director at LSL Property Services, says while house prices remain essentially static, property is actually becoming much more affordable.
He says: “In the last year, home values have risen by an average of £220 per month, but to keep pace with inflation, they would have had to rise by £830 per month. By the same token, in the four years since April 2007, house prices have risen less than 1%, while average wages have increased by 13.7%.”
He believes buyers have been unable to make the most of improving affordability because despite the smaller proportion of salaries property prices currently represent, buyer confidence is low and it’s still far too difficult to get a mortgage.
Brown adds: “Economic uncertainty, fears over jobs, a squeeze on incomes and nervous mortgage lenders are keeping a lid on the housing market. It’s no wonder transaction volumes remain so very low.”