House price latest
Up to date house price news
We collate all the latest house price news from all of the different surveys and indices that exists including Nationwide, Halifax, Hometrack, Rightmove, The office fo the deputy prime minister and the Land registry.
Please come back regularly to read the latest property price news
House price headlines from The Nationwide
- House prices grow fastest in Northern Ireland, but fall in the North
- House prices grew by 13.2% in Northern Ireland and 9.3% in Scotland in 2005
- Prices in England and Wales were more subdued at 1.8% and -0.1% respectively
- In England the fastest growth was in Yorkshire and Humberside at 5.3%
- Prices fell by 2.1% in the Northern Region, with one of the biggest falls being in Sedgefield
- First time buyer affordability is worst in London and best in Scotland
- Scotland and Northern Ireland expected to continue to outperform UK in 2006
Nationwide region by region report
Halifax House price news December 2005
House prices increased by 1.0% in December and by 2.1% in the final quarter of 2005, confirming a modest recovery in prices during the latter part of last year.
- Despite the recovery since last summer, the annual percentage increase in house prices nationally in 2005, at 5.1%, was the smallest for 10 years and significantly below the long-term annual average of 8%. The annual rate of house price inflation slowed in all regions in 2005 with the exception of London where prices rose by 6.7% compared with a 3.9% rise in 2004. House prices increased by less than 10% in all nine English regions for the first time since 1998.
- The recent pick-up in prices is entirely consistent with the improvement noted by all the main indicators of housing market activity over the past few months. The number of mortgage approvals to fund house purchase increased for the fifth successive month in November, according to the latest Bank of England figures. The most recent RICS survey reported the sixth successive monthly rise in new buyer enquiries for house purchases in November, marking the longest running period of increases since 2001.
- Scotland delivered the biggest gains in house prices last year with a 14.8% rise: the first time that Scotland has recorded the strongest rises in the UK for 15 years. The next biggest increases in 2005 were in Northern Ireland (14.1%), North (9.1%), Yorkshire and the Humber (8.4%) and the North West (7.2%). Two regions recorded small falls during 2005 – East Anglia (-1.0%) and the South West (-1.9%) – marking the first regional annual house price falls since 2000.
- Prices in Greater London increased by 3.6% in Quarter 4. This was the second successive quarterly rise in the capital, suggesting the beginning of a recovery following a fall between 2004 Quarter 3 and 2005 Quarter 2. The average price in London broke through the £250,000 barrier for the first time in Quarter 4 (£257,120).
- A 326,000 increase in total employment and a 3.6% rise in average earnings over the past year, together with August’s interest rate cut, have underpinned the recent improvement in house prices. Another year of below trend economic growth and the continuing high level of house prices in relation to earnings, however, should curb housing demand and prevent a renewed bout of high house price increases in 2006.
- The housing market is expected to be flat in 2006 with modest nominal house price growth and no change in real terms. UK house prices are forecast to rise by 3%, broadly in line with the predicted rise in retail price inflation. The annual rate of house price inflation is expected to increase during the first half of 2006, potentially reaching a peak of 7 – 8% mid year as modest price rises compare with slight falls in early 2005. The annual rate is subsequently expected to fall as prices rise at a significantly slower pace than in the second half of 2005.
Read more at the Halifax house price regioanl summary
Hometrack house price news
*House prices rise for first time in 18 months
but prices expected to grow by just 1% over 2006*
- House prices have risen for the first time in 18 months according to the latest house price survey from Hometrack, the online housing research and database company. Despite the small rise in average values over December, the survey of agents shows that house prices remained unchanged in more than 84% of the country’s postcode districts. The small rise over the month was largely a function of average values rising in 9% of postcode districts, with price falls reported in just 6% of postcode districts. “A move to more realistic pricing over the past 12 months and improving buyer confidence has resulted in this small increase in average house prices” comments Richard Donnell, Director of Research. “Despite improving levels of market activity over the second half of 2005, average house prices have fallen by 1.6% over the year. We expect them to rise, on average, by just 1% over 2006”.
- In contrast to previous years, agents reported a rather unseasonal increase in the level of sales over December. Reported sales levels were 3.7% up over the month, following a 4% increase over November. This increase in sales activity has been supported by rapidly improving buyer confidence which is also evident in the robust mortgage lending data. “After the very weak first half to the year there is something of an end of year rush with buyers keen to seal the deal before the new year” comments Donnell.
- Despite the increase in average prices over December buyers remain highly price and quality sensitive. The latest survey highlights that vendors are still only achieving, on average, 93.5% of the asking price as the actual sales price for a property. The average time to sell a property is also stuck at around 8 weeks, unchanged for much of the year. Despite signs of improving market conditions, vendors will need to continue to price their properties realistically in order to achieve a sale.
- This month, there were price falls reported in just one of the ten main regions, whilst four regions saw prices remained unchanged. The remaining 5 regions have seen small increases in average values in the run up to Christmas on the back of improving demand and declining levels of stock. Greater London saw the strongest growth of +0.3% over the month with much of this growth being seen in the central parts of the capital. Prices grew by a reported +1.4% in the ‘Central London and City’ area which covers the residential markets adjacent to the key employment centres of the West End, the City and Canary Wharf.
- The picture across other regions is mixed. Despite average prices firming over the final part of the year, the average time on the market continues to rise across many regions with achieved prices as a % asking price below 95% across all regions.
- After the very weak start to the year, the pick up in market activity over the second half of 2005 has clearly acted as a support to average prices, aided by declining levels of stock available for sale. However, it is clear that buyers remain highly price and quality sensitive. Whilst activity levels may have improved over the autumn of 2005 on the back of more realistic pricing it does not automatically follow that prices will start to rise. Affordability constraints remain the biggest barrier to house price growth in the short term and we expect average prices to rise by just 1% over 2006.
Hometrack house price news
