Housing market shows further signs of recovery
The Land Registry has recorded a 1.7 per cent rise in house prices across England and Wales in July.
It is the first significant rise since 2007, with a series of drops followed by a 0.1 per cent increase last month.
The change takes the price of the average home to £155,885, and the annual price fall to -11.7 per cent.
Market information company Hometrack has also published figures, which cover England and Wales for August. Its index records the first rise since July 2007 - at 0.1 per cent - following three months when prices remained static.
Director of research Richard Donnell said the headline figures mask what is really happening in the market.
‘Far from a national housing market on the up, the headline figures are being skewed by price rises that are restricted to relatively small pockets of the market suffering from a lack of housing for sale – primarily in London and the south east,’ he said.
‘Across the rest of the country housing scarcity is likely to be less pronounced and overall prices are set to track sideways. The short term risks to the market are either a sudden reversal in buyer sentiment or a marked increase in the number of properties coming to the market for sale.’