House prices increase by 0.8%

The UK’s housing market is continuing on an upward trend, with the latest figures showing a 0.8% increase in property prices in the months to July.

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The latest data from the Land Registry revealed that the average house price in England and Wales now stands at £162,900. London continues to lead the way with higher than average price increases. Month on month property values in the capital soared by an impressive 2.7% with year-to-date increases a staggering 6.5%.

In contrast, the North East saw the most significant monthly drop in prices (down by 2.1%), while over the 12 months to July, the North West saw the most significant price fall with a decrease of 3.9%.

Wales followed London with the highest monthly changes in property prices from June to July (up by 2.3%). Third and fourth place in the ranking were occupied by the East Midlands (up by 1.2%) and the East and the South East (both up by 0.4%).

Property prices plummeted across several regions over the month too. Yorkshire and the Humber saw a decrease of 0.1% with the figure for the South West 0.6% and for the North West 1.7%.

Property types

Average year-on-year property prices for a variety of properties have also increased. The cost of a detached home saw a marginal increase between July 2011 and July 2012 (from £256,405 to £256,496), while the cost of a semi-detached home shot up by 0.1% from £153,156 to £153,339.

The average cost of a flat or maisonette increased by 2.2% from £151,981 to £155,314. By contrast, the average cost of a terraced home fell by 0.4% over the same period, from £123,548 to £123,097.

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Posted by: WarrenWilson Categories: Buying, Estate Agents, House Prices, Selling Tags: , , , 7 Comments

7 Responses to House prices increase by 0.8%

  1. avatar dyadco says:

    I think this is wishful thinking.
    Lets not worry about using emotive language such as “soared”, “impressive”, “shot up” etc, the facts are that it is a very subdued market with no legitimate reasons why house prices should increase.

    • avatar JP says:

      Couldn’t agree more dydaco; I think house prices are in for a rocky ride over the next few years specially if interest rates have to go up again because of inflation – how will people pay their mortgages?

    • avatar Rob Slack says:

      There is not a single market…even London has several markets and maybe in some there are good reasons for price rises.

      The underlying factors…rising population, more single occupancy, rising income and housing stock growing slowly will push prices up long term, so house prices will not fall back to pre-bubble levels in real terms. Add inflation and prices will rise over the next few years.

    • avatar Chris Longley says:

      dyadco is right. Re spun PR.
      Most probably these figures take the 0.8% as an average with London included.
      The high value properties in London have a big effect on the averages. Most of the high value properties there are brought by despots and criminals from none too friendly countries.
      All these property blogs are pr work for the Mr 10 percenters like estate agents and financial consultants. Higher the confidence, higher the values.
      Lets hope the banks lending policies reverses house prices back to where they should be.

      “shot up by 0.1%”…lol Are they firing blanks then

  2. avatar GEORGE DUDA says:

    I hardly think “shot up” is an accurate way of describing a puny, statistically- insignificant rise of 0.1%!

  3. avatar Andrew says:

    I infer from the choice of language that the author of this article believes that house price increases are desirable.
    I think it’s time to move beyond that belief system. I recommend this article in the Independent: http://blogs.independent.co.uk/2012/08/28/why-exactly-are-homes-so-expensive/

  4. avatar Chris Longley says:

    £256,405 to £256,496 isnt that a 0.03% increase? Thats £91……new car anyone?