You are here: Home - Uncategorized -

London home prices still growing at 5% a year

0
Written by:
11/02/2011

Greater London is still showing property price rises of over 5% a year, but growth has stalled across the rest of the UK.

Four regions in the UK have seein annual house price falls, including the North, North West, Yorkshire and Humberside and Wales, according to the LSL/Acadametrics index, with all other regions, except Greater London, seeing price falls in the last three months.
There is a sense here of gathering momentum around a falling annual index, again partly due to the effect of strong growth recorded in early 2010 which is now dropping out of the figures,” said Dr Peter Williams, chairman of Acadametrics.

Across England & Wales, the average property price fell by 0.1% in January to £221,211, although prices are still some £20,975, or 10.5%, above the lowest price recorded in April 2009 during the last housing downturn.

“There is no immediate evidence of a double dip recession although we anticipate that house prices will fall further in February 2011. This is a result of the larger than average increases experienced in January and February in 2010 dropping out from the annual statistics,” said Williams.

Williams said prices are expected to stay flat or show marginal declines, adding the course of the housing market largely depends on interest rates, the economy and the availability of mortgage finance.

“The Monetary Policy Committee has a delicate balancing act to sustain, although the market is now pricing in rate rises through the year,” he said.

“Although total mortgage lending for the year at £136.3bn was slightly above expectations, it was the lowest annual total since 2000 and there is a general expectation that the total for 2011 will be lower still.”

David Brown, commercial director of LSL Property Services, said prices are being cushioned by continued demand from cash-rich buyers, as well as the slight reduction in the supply of properties hitting the market.

“We should see a bubble of increased activity at the top end of the market in the next couple of months as buyers look to hurry through purchases of properties worth more than £1 million before the stamp duty hike in April.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Million pound property sales jump 58% in 2010

Specialist large loans broker, Largemortgageloans.com said million pound property sales in the UK rose by 58% in 2010.

Close