29
Sep
Land Registry reports small rise in UK house prices
The Land Registry has today issued a report suggesting that UK
house prices increased by 0.3% in August which was around half of
the rise seen in July. According to the report the average home in
England and Wales is now valued at £167,423 with annual growth
falling from 6.8% in July to 6.7% in August. These figures on the
surface appear to be very much at odds with recent property reports
suggesting UK prices have fallen but there is a reason for
this.
The Land Registry figures are based upon completed transactions
and therefore in effect lag the real-time market which pays no
attention to whether deals have been completed and signed off. So
in theory the figures from the Land Registry could be anything up
to 6 months or more behind the current house price data.
It was also revealed today that HM Revenue and Customs has seen
a 6% drop in the number of property sales completed in the UK
during the month of August. This is potentially the key factor
within the information reported today because a lack of demand in
the UK property market will inevitably lead to a reduction in
prices which could be exacerbated by the economic situation