The October data from Land Registry's House Price Index shows an annual price increase of 3.4% which takes the average property value in England and Wales to £165,505.
Eight regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the highest annual price change is London with an increase of 7.6%. The East experienced the greatest monthly rise with an increase of 1%.
The region with the greatest annual price fall is the North East with a movement of -0.9%. Yorkshire and the Humber experienced the most significant monthly price decrease with a movement of -1.8%.
The most up-to-date figures available show that during August 2010, the number of completed house sales in England and Wales rose by one per cent to 58,783 from 58,270 in August 2009. The number of properties sold in England and Wales for over £1 million increased by 44% between August 2009 and August 2010, from 506 to 731.
London's monthly house price growth now stands at 0.3%, which takes the average property value in the capital to £341,105. London's annual change of 7.6% is the strongest growth seen in any of the regions of England and Wales. However, the figure is also the fifth month in a row in which annual growth has fallen.
Commenting on the data, Alison Beech, business relationship director, Valunation, said: “Land Registry’s October House Price Index has followed the recent negative trend and reported a fall in prices. Uncertainty about the market and concerns over household income and job security is causing an aversion to moving home. Some households have little room for financial manoeuvre and find themselves trapped in their mortgages. Would-be first time buyers have little chance of raising a sufficient deposit to obtain a mortgage.
“With banks suggesting this week that mortgage lending will not improve in 2011, the future looks bleak. The FSA’s recent warning that it will require even stricter assessments of mortgage applicants could be the nail in the coffin for this generation of potential first time buyers, which will have a deeply negative impact on the property market as a whole.”
