House prices down 0.2pc

Sam Cordon

November 28, 2013

The average price of a house in England and Wales now stands at £165,515 but prices still remain 3.1% higher than they were last year.

Regionally Wales experienced the fastest price rise with a 2.4% rise whilst prices fell quickest in the North-East which recorded a 3.1% decline.

The figures also show that the total number of house sales have risen steeply this year with sales increasing by 15% annually to 74,767.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “The latest Land Registry data reveals a measured rise in house prices this year, with an annual change of 3.1% bringing the average house price in England and Wales to £165,515.

“This reflects a surge of consumer confidence in 2013, as potential buyers – bolstered by falling rates and government assistance through Help to Buy – were increasingly drawn to the housing market.

“However, this rise is far from meteoric and the news that house prices are down 0.2% month-on-month should help to quell fears of excessive price inflation.

“The Bank of England’s decision to withdraw the Funding for Lending Scheme (FLS) from the mortgage market from January will clearly impact mortgage rates, but it should also ensure a measure of calm going into 2014.

“A steady rise in house prices remains positive news, especially as they are returning from a low base brought on by the 2007 recession. Help to Buy will ensure demand and consumer confidence continues to grow in the wake of FLS, while a responsible attitude to lending and a watchful eye from the Bank of England will continue to nurture the seeds of recovery seen this year.”

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