ONS house prices “stable” in July
House prices remain relatively stable across most of the UK although prices in London continue to increase while Northern Ireland prices are falling.
The year-on-year increase reflected growth of 2.4% in England which was offset by declines in Scotland, Wales and Northern Ireland of 1.1%, 0.2% and 10.9% respectively.
Annual house price increases in England were driven by a 5.7% rise in London and increases in the East of England and Yorkshire and the Humber of 2.4% and 2% respectively.
Annual house prices decreased by 1.3% in the North West and 0.5% in the North East.
Excluding London and the South East UK house prices increased by 0.6% in the 12 months to July 2012.
On a seasonally adjusted basis UK house prices were unchanged between June and July.
Prices of new dwellings rose by 1.6% during the 12 months to July 2012, while the price of pre-owned dwellings increased by 1.9% in the same period.
In July 2012 prices paid by first-time buyers were 1.8% higher on average than in July 2011.
For owner-occupiers (existing owners) prices increased by 2% for the same period.
Peter Rollings, CEO of estate agent Marsh & Parsons, said: “It’s certainly early days, but national house prices are showing tentative signs of strengthening. By pre-crunch standards, a 2.4% annual rise in England would hardly have raised an eyebrow, but given the ongoing recession, it represents an encouraging step forwards.
“London continues to operate at another pace entirely to the rest of the country, but this is not a phenomenon purely confined to the most prestigious addresses of Chelsea and Kensington. While prime central London has seen the most drastic price increases by far, 29 London boroughs have seen prices rise over the last year as price growth ripples out from the centre.”