Land Registry reports 0.6% rise in house prices in October

Permalink: Land Registry reports 0.6% rise in house prices in October
by Kay Murchie

The Land Registry has reported a rise in house prices in England and Wales in October.

According to the Registry, house prices rose by 0.6% in October compared with September putting the average cost of a home at £159,546.

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, it was the fifth consecutive month that prices had gained, however, house prices are still 3.4% lower than a year ago.

On a regional basis, the largest monthly rise was seen in North-West England, rising by 1.9% during the month.

However, prices in Wales and the West Midlands fell by 2.3% and 0.6% respectively.

In London, house prices were broadly unchanged from October 2008, at just 0.2% lower.

Commenting on the figures, Oliver Gilmartin, economist at the Royal Institution of Chartered Surveyors, said: “There remains a wide variation in the strength of the pricing recovery between the regions.

“Average house prices in London grew at over £4,000 during October whilst Wales witnessed price falls of over £2,000,” added Mr Gilmartin.

Meanwhile, economic forecasting agency, Capital Economics, is predicting that the gains in house prices seen over the past few months will not last.

The group said: “The shortage of available property may mean that prices continue to increase in the near-term, but with employment set to fall further, we expect house prices to resume their downward trend in 2010.”