Strong house price growth in February 2007

February data from the Land Registry shows a further house price gain, with an annual increase of 8.5 per cent. The monthly change in house prices of 1.0 per cent raises the average house price to £177,099 in February 2007.

The data for this month shows the highest annual increase in almost two years. The last time annual growth was above the current level was in April 2005. A year ago, in February 2006, the annual price change was 3.6 per cent, less than half the 8.5 per cent annual price change in February 2007.

London house prices are increasing at a rate above that of England and Wales as a whole, showing a continuation of the trend since March 2006. The figures for February 2007 show the divide to be at it’s widest point since August 2006. London’s annual change of 11.3 per cent is almost three percentage points greater than the rest of England and Wales combined.

The average price for Greater London in February 2007 stands at £319,189 whereas the average price for England and Wales is £177,099.

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 London with an increase of 11.3 per cent.

The region with the lowest annual price rise is Wales, with an increase of 4.4 per cent.

The North East experienced the highest monthly change, with an increase of 2.2 per cent.

Wales experienced the largest negative price movement this month with a change of -3.9 per cent.

Key county and unitary

Blaenau Gwent is the county with the highest annual price change with an increase of 14.1 per cent. Thirteen other counties and unitary authorities also exhibited annual price increases of over 10 per cent.

No county or unitary authority experienced negative annual price change this month.

Key county and unitary authority observations

Rutland experienced the strongest monthly growth in February with an increase of 2.6 per cent.

Ceredigion had the most significant monthly price fall during February with a movement of -1.4 per cent.

Newport and Cardiff exhibited no monthly price movement.

Key metropolitan district observations

The metropolitan district with the highest annual price increase is Bradford, rising by 11.6 per cent.

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

South Tyneside experienced annual growth of 0.1 per cent, making it the lowest performing metropolitan district in terms of annual price change this month.

South Tyneside also experienced the largest negative monthly price movement, with a fall of 1.1 per cent.

Manchester, Stockport, Oldham and Dudley experienced no monthly movement in prices in February.

Key London borough observations

The borough with the highest annual price increase is Kensington and Chelsea, rising by 19.7 per cent.

The highest monthly price increase was Islington, with a rise of 1.5 per cent.

Newham experienced an annual growth of 3.0 per cent, making it the lowest performing borough in terms of annual price change.

Hackney experienced the only negative monthly price movement, with a fall of 0.3 per cent.

The only borough that experienced no monthly movement in price in February was City of Westminster.

Sales volumes

In the months September to December 2006, transaction volumes averaged 103,504 transactions per month. This is an increase from the same period last year when sales volumes averaged 97,190.

The pattern of transaction volumes in London continues to mirror 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 31 per cent between December 2005 and December 2006, from 359 to 472.

Sales volumes by price range (London)

The number of properties sold in London for over £1 million increased 42 per cent between December 2005 and December 2006, from 202 to 286.