House prices edge up in July

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by Gill Montia

House prices in England and Wales edged up by 0.2% in July, according to Acadametrics, and at £225,769 the value of the typical home showed an annual gain of 3.2% (June: +3.6%).

However, banks and building societies are targeting those with sizeable deposits or plenty of equity, leaving the housing market dominated by wealthier borrowers and cash buyers.

Because unlocking the lower end of the market is central to recovery, much now depends on the success of the Government’s Funding for Lending Scheme and the NewBuy initiative, Acadametrics suggests.

On a regional basis, house prices continue to vary widely.

Less prosperous areas, such as Hartlepool, have seen prices fall by 8.3% in the last 12 months as lenders shy away from areas where high levels of unemployment may threaten borrowers’ finances.

At the same time, London’s market goes from strength to strength, with house prices in 10 of the Capital’s boroughs having hit new highs in July.

The research also shows sales activity bouncing back in July, following a slowdown in June on account of the Jubilee bank holiday.

Acadametrics estimates that 65,500 properties changed hands last month but overall the firm expects house sales to remain weak going forward, at around 60,000 per month.