Property prices in England and Wales static for second month in a row

Property prices in England and Wales were static in April, up just 0.1% compared to the previous month to an average of £301,606, the latest index shows.

This is the second month in a row that prices have remained more or less unchanged, according to the Your Move index and comes at a time when interest rates remain at a record low.

Year on year average prices are still up, some 3.5% higher than they were in April 2016, the data also shows and the market in London is subdued with prices down 0.1% month on month and sales down a fifth in two years.

The West Midlands saw the biggest growth with prices up 0.5% monthly and 6.2% annually to an average of £214,309, followed by the East of England up 0.5% and 4.9% to £321,373.

Prices increased by 0.3% in the East Midlands month on month and by 4.3% year on year to an average of £202,606, and by 0.1% in the North West on a monthly basis and 3.3% year on year to £184,720 and by 0.1% and 1.8% in Yorkshire and the Humber to £182,185.

Month on month prices were static in Wales, the South East and the South West and increased year on year by 2.3%, 3.9% and 4.5% to £176,040, £373,379 and £277,533 respectively. Prices fell by 0.4% in the North East month on month and are just 0.1% higher than a year ago at £156,940.

The index report points out that the announcement of the general election in April had little effect on monthly figures but adds that the outcome of the vote in June could affect the housing market further down the line.

It also points out that annual prices in England and Wales are now higher excluding the South East and London than including them, as transaction levels were lifted among lower priced properties and regions, where effective tax rates were reduced, and depressed at higher prices, where they fell.

‘Real transformation is needed to address the housing supply shortage. Recent reports from House of Commons committees have made a strong case for the government to do more,’ said Oliver Blake, managing director of Your Move and Reeds Rains estate agents.

‘As manifestos are published ahead of the upcoming election, we hope there is commitment to bridging the gap between supply and demand which will stimulate more market activity, stability and enable more people to secure their dream home,’ he added.