House price growth continues steadily

House prices in England and Wales have continued to rise steadily, according to official government figures.

This month’s Land Registry data shows an overall monthly increase of 0.6 per cent and an annual increase of 6.8 per cent. This increase means that the average property price is now £172,006.

After robust growth in September and October, the November monthly growth rate reflects a calmer market. However, the growth rate remains firmly positive. The November monthly growth rate of 0.6 per cent is approximately twice the size of the average monthly growth in 2005.

After six months of outperforming the rest of the country, house price growth in London has shown a slight weakening. Nevertheless, London prices have increased more than England and Wales over the last 12 months. London’s annual growth this month is 7.8 per cent compared with the 6.8 per cent increase of England and Wales as a whole.

Key regional observations

All regions in England and Wales experienced average price increases over the last twelve months.

The region with the highest annual price change is the East with an increase of 8.0 per cent.

The region with the lowest annual price rise is the East Midlands, with an increase of 4.7 per cent.

The West Midlands experienced the highest monthly change, with an increase of 2.0 per cent.

London and Yorkshire & The Humber were the only regions to experience negative monthly price changes with movements of -0.6 and -1.5 per cent respectively.

Key county and unitary authority observations

Neath Port Talbot is the county with the highest annual price change with an increase of 13.1 per cent. Blackburn with Darwen, Brighton and Hove, Middlesbrough and Torfaen also exhibited annual price increases of over 10 per cent.

Ceredigion and the City of Nottingham both experienced negative annual price changes this month with falls of 0.3 and 1.3 per cent respectively.

Key county and unitary authority observations

The Isle of Anglesey experienced the strongest monthly growth in November.

Blackburn with Darwen and Swansea had the most significant monthly price fall during November both with a movement of -1.5 per cent.

Nine out of the 109 counties and unitary authorities exhibited no monthly price movement.

Key London borough observations

The borough with the highest annual price increase is Hammersmith and Fulham, rising by 15.1 per cent.

The highest monthly price increase was in Kensington and Chelsea, with a rise of 1.8 per cent.

Barking and Dagenham experienced an annual growth of 2.9 per cent, making it the lowest performing borough in terms of annual price change this month.

Croydon experienced the greatest negative price movement this month, with a fall of -0.5 per cent.

The only borough that experienced no monthly movement in prices in November was Hammersmith and Fulham.

Sales volumes

In the months June to September 2006, transaction volumes have averaged 100,216 transactions per month. This is an increase from the same period last year when sales volumes averaged just above 98,856.

The pattern of transaction volumes in London continues to broadly follow the rest of the country.

Price index volatility is greater in areas where recorded sales volumes are low. Index volatility leads to erratic and high changes in price. Some of the areas that typically have very low transaction volumes include but are not limited to the following: City of London, Rutland, Isle of Anglesey, Merthyr Tydfil, Blaenau Gwent, Ceredigion, Torfaen.

Data for the two most recent months are not used as comparisons due to the lag in the registration of sold properties.

Sales volumes by price range (England and Wales)

The number of properties sold in England and Wales for over £1 million increased 35 per cent between September 2005 and September 2006, from 410 to 552.

Sales volumes by price range (London)

The number of properties sold in London for over £1 million increased 33 per cent between September 2005 and September 2006, from 235 to 313.