Average house prices higher
Assetz House Price Watch compiles monthly average figures taken from five of the major house price indices to offer a more accurate picture of house price trends.
Its latest figures show a continued tempering of the high rate of annual growth recorded in recent months.
The data shows that UK house prices remain stable, with the average price of a home in July costing £200,913. House prices are now only 6.6% below the peak of the market – £215,089 recorded in October 2007.
The annualised average rates of growth point to continuing market stability, with the six month rolling average now showing 4%. Annualised average data shows that UK house prices have reached more sustainable levels, compared to the large fluctuations witnessed earlier this year.
Stuart Law, chief executive of Assetz, commented: “UK house price growth continued to slow in July, however, prices remain strong despite the very minor slip in month on month figures – indicative of the usual summer slowdown and as a result of the greater than normal confusion over the election period.
“Average house prices are now only 6.6% below their peak and have climbed by over 3% for the year to date.
“The latest house purchase lending data from the CML also reveals a continued rise in the number of new loans being advanced, pointing to continuing demand from buyers.
“With the base rate expected to remain at 0.5% for the foreseeable future, even more will be encouraged back into the market, especially now that the economy continues to recover more strongly than predicted in this low interest rate environment.
“The government’s austerity measures are likely to hold down house price growth in 2011 but we are yet to see these cuts reflected in the monthly data.
“Continued low interest rates and a lack of supply will boost prices this year and for this reason, contrary to most commentators, I still expect to see 5% overall growth for 2010.”