This is according to the latest LSL Acadametrics House Price Index which also found an increase in the number of £1 million-plus house sales.
Dr Peter Williams, housing market specialist and chairman of Acadametrics, commented: “It is clear that the main driver in the increase in this month’s average price was the rush by more affluent buyers to avoid the introduction on 6th April 2011 of the higher stamp duty on dwellings costing £1 million or more.
“At the end of April, the Land Registry had recorded the purchase, between 1st April and 5th April 2011, of 491 properties with values in excess of £1,000,001. Thus, in the first five days of April, which included a weekend, the number of properties sold in excess of £1 million had already topped the number normally observed for the whole of the month, and we anticipate that yet more such sales are due to be recorded.
“Clearly such transactions lie outside of the mainstream housing market. Our regional chart shows that on an annual basis, house prices are falling in all regions of England and Wales, except for London and the South East. In the short term, there is little to suggest that this situation will reverse. Indeed, given the generally falling market, plus the removal of previously positive months from the LSL Acad HPI calculations, we may see this negative trend in annual house price change strengthening in the months to come.”
