Land Registry reports 0.1% rise in June house prices

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by Kay Murchie

According to the Land Registry, house prices rose by just 0.1% in June compared with May, putting the average cost of a home at £166,072 in England and Wales.

It must be noted that the Land Registry compiles its data from completed transactions and therefore lags behind other monitors of the housing market but is generally regarded as the most authoritative.

According to the Registry, house prices are now 8.4% higher than a year ago and are now similar to levels seen in the summer of 2006.

London saw the biggest annual rise in prices during the month, with the annual rate of inflation at 12.2%.

Howard Archer, economist at IHS Global Insight, comments: “The only marginal house price rise in June reported by the Land Registry maintains our belief that house prices will fall back over the latter months of 2010 and very likely soften further in 2011.”

Other housing reports have suggested the housing market will remain subdued this year due to economic uncertainty.

Furthermore, the decision by the coalition Government to scrap Home Information Packs (Hips) has resulted in a surge of properties being put up for sale but the lack of buyers will ultimately drive down house prices.