House Prices - Summary
HOUSE PRICES IN JULY
2010
House prices increased by 0.6% in July.
This modest rise offset the 0.6% fall in June.
House prices in July were 4.9% higher on an annual basis as measured by
the average for the latest three months against the same
period a year earlier. This
was below the 6.3% increase in June and compares with a recent
high of 6.9% in May.
Prices in July were marginally (0.8%) lower than at the end of 2009 but
are 8.3% above
their April 2009 trough. The average house price is now £167,425;
16% below its August 2007 peak.
Housing
market activity broadly stable.
Bank of England industry-wide figures show that the
number of mortgages approved to finance house purchase in the
three months to June – a leading indicator of completed
house sales – were modestly (2%) higher than in the previous
quarter, on a seasonally adjusted basis.
Activity remains significantly lower than a few years
ago with approvals 56% lower in 2010 Quarter 2 compared with
2007 Quarter 2.
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 30% in 2010 Quarter 2.
This key measure of affordability is at a more
favourable level than the long-term average over the past 25
years (37%) and is a key factor supporting housing demand.
In
separate research to be released later this week, Halifax has
found that the total value of privately owned housing stock in
the UK more than doubled over the past decade. There was a
118% increase from £1,719 billion in 1999 to an estimated £3,755
billion in 2009. During the same period, the retail price
index rose by 29%. However, since 2007 the value of housing
stock in the UK has declined by 8%. This reflects the
reduction in house prices between mid 2007 and early 2009. The
improvement in house prices in 2009 saw housing value grow by
an estimated 2% during the year.
| Month |
Average
Price |
Monthly
Change |
Annual
Change |
Index |
| |
|
July
|
£167,425
|
0.6%
|
4.9%
|
541.9
|
|
June
|
£166,203
|
-0.6%
|
6.3%
|
537.9
|
|
May
|
£167,570
|
-0.4%
|
6.9%
|
542.3
|
|
April
|
£168,212
|
-0.1%
|
6.6%
|
544.4
|
|
March
|
£168,521
|
1.1%
|
5.2%
|
545.4
|
|
February
|
£166,857
|
-1.5%
|
4.5%
|
540.0
|
|
January
|
£169,777
|
0.6%
|
3.6%
|
549.5
|
Index Seasonally Adjusted.
Based on Index 1983 = 100
Source: Halifax and Nationwide
House
Prices in 2009
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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