publication date: Jul 14, 2014
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author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
What's happening with property prices this month?
My monthly property price summary analyses the main property price indices The indices range from the Land Registry which reports on 'sold property prices' all the way through to Rightmove which looks at the asking prices.
What are the main headlines?
A bit of a mixed bag as usual and with the holiday season in full swing there's always going to be a bit of headline grabbing!To counterbalance the hyperbole, here’s my summary of the report headlines.
Read July's property price summary here
Kate Faulkner comments on Report Headlines:
“Well this is all very predictable! Pent up demand certainly seems to be abating, hence the number of buyers is likely to fall back over the coming months, especially as it’s the holiday season. In addition, property price reports are now starting to compare a rising market this year versus a rising market in 2013, as opposed to a flat one in quarter one 2013. The result is the growth year on year is slowing, prompting headlines of prices still rising but more moderately.”
Actual report headlines
Rightmove “Prices go off the boil as supply and demand find a better balance.”
Home.co.uk “High prices tempt more Londoners to sell.”
Hometrack “Hometrack Housing Survey shows ‘the brakes are on’ house price growth.”
RICS “Rotation away from the capital after strong outperformance.”
Nationwide “House price growth remained strong in June.”
Halifax “House prices in the three months to June 2.3% higher than in the three months to March.”
Acadata “House prices see highest annual rise in four years, but rate of growth slowing.”
Land Registry “The May data shows a monthly price change of 0.4 per cent.”
If you're thinking of buying or selling you need to know what's happening in your area. Here is a
summary of the reported indices for the different regions.
Download July’s property price summary here
Kate Faulkner comments on Regional Price Differences:
“If only the reality of property prices were being reported, people would stop panic buying! The fact is, in most places property prices are excellent value for money. Normally prices would rise above inflation, yet that’s only happened to some properties and areas in the likes of London since 2007. Even in London 10/32 boroughs have grown below the normal rate since the crash. Around the rest of the UK, prices in real terms are, according to LSL, still lower than their
2005 prices. The message is: it’s a great time to buy and sell a home, but be careful not to overpay if investing!”
Regional report sumary from July’s different indices
Rightmove “More regions see falls than rises this month and all the fallers are in the north, with the notable exception of London, which records a drop of 0.5%. (June 2014)”
Home.co.uk “Home prices rose in all English regions, Scotland and Wales over the last month, with theexception of the North East, where prices slipped marginally (0.1%). Scotland and the West Midlands posted only marginal gains of 0.1% and 0.3% respectively. Monthly price rises were strongest in East Anglia (2.0%), the East Midlands (1.6%) and Greater London (1.6%).
(May 14)”
Hometrack The coverage of postcode districts with price increases over the month has continued to decline from 50% in April to 32% in June. London has seen the lowest coverage of price rises
for 16 months – half the level of the second half of 2013. (June 14)”
RICS “The headline RICS price balance remained broadly unchanged over the month with prices
rising in each of the twelve areas we monitor. The South East and Northern Ireland
experienced the strongest price gains for the second consecutive month while the rate of
price growth in the London market appears to be easing. The London price balance recorded
a value of 31 which, although still indicative of relatively solid growth, is the lowest reading
since March 2013 and is now below the national average. (June 14)”
Nationwide “While all regions recorded annual price gains for the fourth quarter in a row, there is still significant variation across the UK, with the South of England continuing to record the
strongest rates of growth. In particular, London continued to outperform, with prices up by
almost 26% in Q2 compared to the same period of 2013. The price of a typical property in
London reached the £400,000 mark for the first time, with prices in the capital now around
30% above their 2007 highs and more than twice the level prevailing in the rest of the UK
when London is excluded. In the UK as a whole, prices are less than 1% above their pre-crisis
peak. Excluding London they are 0.4% below peak. (June 14)”
Acadata “London continues to dominate the regional league table in terms of house price growth,
with house price inflation double that of any other region in England & Wales. Record
average house prices have again been set in three regions, Greater London, the South East
and East Anglia, with the South West region only £38 short of its own record average price of
£240,599, which was set in October 2007. (June 14)”
Land Registry The region with the most significant annual price increase is London with a movement of 18.5 per cent. North East saw the lowest annual price growth with a movement of 0.9 per cent. London experienced the greatest monthly price rise with a movement of 2.5 per cent. Yorkshire & The Humber saw the most significant monthly price fall of 0.9 per cent. (May 14)”
Download July's Property Price Summary here
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