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House Prices - Summary
HOUSE PRICES IN JANUARY
2010
House
prices increased by 0.6% in January.
Prices rose for the seventh consecutive month, but
January's rise was the lowest during this period and was
significantly below the 1.1% average over the previous six
months.
Prices
have risen by 9.9% since reaching a low in April 2009; an
increase in the average price of £15,287 over this period.
This follows a decline of 23% between August 2007 and April
2009.
The average house price is now £169,777.
House
prices in January were 3.6% higher on an annual basis. This is
the largest increase in the annual rate of change - measured
by the average for the latest three months against the same
period a year earlier – since February 2008.
The comparable rate a year ago was –17.2%.
Housing
market activity continues to pick up albeit from a low base.
House sales in England and Wales in October were 34%
higher than a year earlier, according to the latest Land
Registry figures. Bank of England industry-wide figures show
that the number of mortgages approved to finance house
purchase – a leading indicator of completed house sales –
in the final three months of 2009 was significantly up on the
number in the same period a year earlier (176,517 against
91,221).
This was despite a marginal monthly fall (-1.7%) in
December; the first decline since November 2008.
Approvals were still 22% lower than in December 2007.
Low
mortgage rates have reduced the burden of servicing mortgage
debt. Nationally,
typical mortgage payments for a new borrower have fallen from
a peak of 48% of average disposable earnings in 2007 Quarter 3
to 32% in 2009 Quarter 4.
Low
supply of properties for sale has been another factor pushing
up house prices.
There are, however, some signs that the improvement in
market conditions since last spring is leading more homeowners
to try to sell their property.
Instructions to sell increased for the seventh
successive month in December, helping to increase the stock of
properties available for sale.
(Source: RICS monthly survey, December 2009.)
Separate
research recently released by Halifax demonstrated that the 'Noughties'
were a significant period for the UK housing market.
Despite a fall of more than one-fifth between mid 2007
and mid 2009, house prices increased by more in real (i.e.
inflation adjusted) terms than in any other decade over the
last 50 years.
House prices increased by 105% during the 2000s, taking
the UK average house price from £81,596 in 1999 quarter 4 to
£167,020 in 2009 quarter 4.
Redruth
recorded the biggest price rise during the last decade (207%).
Three of the four towns that delivered the largest
gains are in Cornwall; Redruth, Penzance and Helston.
All ten towns recording the fastest house price growth
in the 2000s are on, or close to, the coast. The
majority of towns that experienced the strongest price growth
began the decade with lower than average property prices,
which provided the platform for bigger price gains.
| Month |
Average
Price |
Monthly
Change |
Annual
Change |
Index |
| |
|
January
|
£169,777
|
0.6%
|
3.6%
|
549.5
|
| 2009 |
|
December
|
£169,042
|
1.0%
|
1.1%
|
547.1
|
|
November
|
£167,664
|
1.4%
|
-1.6%
|
542.6
|
|
October
|
£165,528
|
1.2%
|
-4.7%
|
535.7
|
|
September
|
£163,533
|
1.6%
|
-7.4%
|
529.3
|
|
August
|
£160,973
|
0.8%
|
-10.1%
|
521.0
|
|
July
|
£159,623
|
1.1%
|
-12.1%
|
516.6
|
|
June
|
£157,713
|
-0.5%
|
-15.0%
|
510.4
|
|
May
|
£158,565
|
2.6%
|
-16.3%
|
513.2
|
|
April
|
£154,716
|
-1.7%
|
-17.7%
|
500.7
|
|
March
|
£157,326
|
-1.9%
|
-17.5%
|
509.2
|
|
February
|
£160,327
|
-2.3%
|
-17.7%
|
518.9
|
|
January
|
£163.966
|
1.9%
|
-17.2% |
530.7
|
Index Seasonally Adjusted.
Based on Index 1983 = 100
Source: Halifax and Nationwide
House
Prices in 2008
House
Prices in 2007
House
Prices in 2006
House
Prices in 2005
House
Prices in 2004
House
Prices in 2003
House
Prices in 2002
House
Prices in 2001
House
Prices in 2000
House
Prices in 1999
House
Prices in 1998
House
Prices in 1997/6
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