Stagnation in the Property Market
House prices dip after the small uplift in July
07-10-11, UpMyStreet ©
House prices fell 0.3% between July and August the latest data from the Land Registry house price index shows.
The return to the negative price trending seen in May and June, after the brief rise in July, means the average property in England and Wales is now worth £162,347.
Properties in Scotland are now worth an average of £164,139 according to the Registers of Scotland.
Officials at the Land Registry note that the annual price dip of 2.6% is ‘on a similar level to the past four months.’
All change
Regionally, property prices have been all change, bar one notable exception, London, which continues to resist the overall property trends with a 0.5% monthly increase.
» See the regional price breakdown
London is also the only region to see a year-on-year increase for the month of August.
The East and the East Midlands also saw rises of 0.8% and 0.7% respectively.
All other regions saw a drop in average prices with Wales (-1.7%) faring the worst, taking house prices to £117,534.
The South West (-1.1%), which saw the biggest price increase in July, experienced the second largest monthly slump, with house prices now at £173,137.
Decreases were also felt in the North West (-1.1%), effectively cancelling out the price rises of the previous month.
The expert opinion
Lucy Pendleton, of estate agents James Pendleton, said the market was in a state of eternal to-ing and fro-ing.
‘London, with its unique climate, once again stands out as the most resilient local market in the UK,’ she said.
‘While London prices float upwards due to a shortage of property and strong demand, not least from wealthy foreign buyers attracted by the cheap pound, for the rest of the UK it is not quite so positive.’
The debate around unrealistic asking prices has also reignited.
Speaking to the BBC, Henry Pryor commenting that with asking prices still much higher than selling prices, sellers were still in denial about the true market value of their homes.
‘The result of this difference of opinion is that the market is seizing up with low sales volumes reflecting that very few buyers and sellers can agree on a mutually uncomfortable price,’ he said.
‘Sellers need to wake up and realise that an optimistic guide price just makes you look greedy and unrealistic.’
Sales volumes have dropped by 9% between March and June, when compared to the same time period last year.
