Latest land registry figures shows some UK property prices falling, first drop in over a year

The steepest fall in prices were in Wales where both Blaenau Gwent and Denbighshire saw prices drop by 3.6% followed by North Tyneside and Bedford, both down 1.2% and Sheffield saw a drop of 1%.
 
Overall the average property price has dropped to £165,314 from £165,596 but the picture varies across the country. Prices in the south east and London continue to rise. They were up 0.9% in the south east and 0.7% in the capital. London’s monthly change of 0.7% marks the capital’s third consecutive monthly house price increase and the average property there is now worth £338,708.
 
Year on year all regions saw average property values increase with London rising by 14.2%, the south east by 11.3%, and the south west by 10.7%. In contrast, in the north east prices rose by just 1.8% and the east Midlands by 3.1%.
 
Property transactions have increased to an average of 50,658 per month in the four months from December 2009 to March 2010 from 32,009 over the same period a year earlier, the figures also show.
 
The monthly fall in prices suggest a slowing of the property market recovery. The most recent figures from property consultancy Hometrack shows prices rose by just 0.1% in June.  
  The housing market suffered a slow start to the year due to a combination of the end of the stamp duty holiday, the severe winter weather and uncertainty caused by the general election. But the market has failed to regain momentum as the impact of these factors has worn off, leading economists to speculate that the recovery may have run out of steam.
 
‘The Land Registry data for May and the June Hometrack survey both add further substance to our long held belief that house prices will struggle to make significant gains over the coming months,’ said Howard Archer, chief UK and European economist at IHS Global Insight.
 
‘Housing market activity remains well below long term norms despite edging up recently. The economic fundamentals of high unemployment, still falling full time employment and low earnings growth are hardly ideal. Also very significantly, more properties are coming on to the market thereby moving the supply/demand balance more in favour of buyers,’ he added.