London was the region of England and Wales with the fastest increase in average property values, up 11.2% over the last 12 months and up 2.6% month on month.
The North East is the only region with an annual price fall, with a decrease of 0.1% and Yorkshire and the Humber saw the most significant monthly price fall with a drop of 1.2%.
The most up to date figures available show that during October 2013 the number of completed house sales in England and Wales increased by 21% to 71,929 compared with 59,213 in October 2012.
In December, over 76,500 residential properties in England and Wales were lodged for registration and the data also shows that repossessions are down, falling by 31% in October.
The regions with the greatest fall in the number of repossession sales were the East Midlands and the South West.
The property market is building on the strong momentum from last year, according to David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains. He pointed out that the recovery has spread far and wide with nearly all regions recording consistent annual price growth.
‘Help to Buy continues to energise the property market, while surging demand and increasing competition for available property will no doubt carry on supporting steady price growth in the year ahead. However, there is still a chorus of concern about the lack of housing stock including new homes coming onto the market which could lead to demand outstripping supply and some buyers being priced out of the housing market. But at this stage we are not seeing a house price bubble on the horizon,’ he explained.
‘The crux of the matter is simply we need more homes to allow the property and mortgage markets to prosper fully. Thankfully the government has already begun to take heed, and outlined initiatives to ease some of the pressure. The hope is that these are put into practice and we see a real boost in housing supply this Spring and beyond,’ he said.
‘With the improving economy and more positive news everywhere potential sellers that have been locked into their current homes with a fear of job losses or escalating interest rates are starting to become more confident about the longer term outlook and register as potential buyers and thinking about moving. These homes coming available on to the market are as important as the growth in new homes to stimulate some more volume in the housing market,’ he added.
David Brown, commercial director of LSL Property Services, pointed out that house prices haven’t risen this quickly since 2010, but the average home is still worth 8% less than it was in November 2007, a peak that is unlikely to be reached until the start of next year at least.
‘But volumes are another issue. Properties are coming off the shelves faster than new sellers can be found and that will have consequences in the medium term. For some aspiring homeowners getting a foothold in such a competitive marketplace is just as difficult as it was a year ago. Economic prospects are improving, and mortgage lending has recovered dramatically but the resulting stampede is another game entirely,’ he explained.
‘Until we can build more homes, much more quickly, this situation won’t change for a large proportion of the population. Tenants struggling to save a deposit are set for another challenging year, but will be able to take some comfort from rents that are now rising even more gradually than on-target inflation,’ he concluded.
Paul Hunt, managing director of Phoebus Software, said that the mortgage market is moving in the right direction and there are good signs that the recovery has become universal. ‘There’s been a vast improvement in the number of sales along with strong house price growth spreading out across the UK, climbing at a rate not seen since 2010. The Help to Buy scheme has helped boost the availability of mortgages and has improved lending conditions,’ he pointed out.
He also said that a growing sense of confidence in the state of the economy has inevitably made more banks and buyers optimistic about the future of the property market. ‘The influx of first time buyers has boosted competition, while strong demand and rising positive sentiment have worked closely in promoting growth in the mortgage market,’ he said.
‘A raft of attractive, well priced mortgage deals are emerging and while lenders continue to be proactive in their approach to lending, the property market will see further improvements in coming months. Government initiatives including the outlined plans to help boost the level of housing supply will continue to give the housing market a boost this Spring if successful,’ he added.
