House prices continue strong run

House prices in England and Wales have continued their recent strong run with an annual increase of 8.3 per cent in March 2007, according to figures from the Land Registry. The monthly change in house prices of 1.0 per cent raises the average house price to £178,423 in this month.

The data for this month shows one of the highest annual increases in almost two years. A year ago, in March 2006, the annual price change was 4.3 per cent, almost half the 8.3 per cent annual price change in March 2007.

Average annual price change

The March data shows the current rate of increase for London house prices is over 3 per cent per annum greater than that of England and Wales as a whole. The divide in annual growth between London and England & Wales has averaged 2.7 per cent over the last six months.

The average price for Greater London in March 2007 stands at £323,511 whereas the average price for England and Wales is £178,423.

Price change by region

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 11.6 per cent.

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

Wales experienced the highest monthly change, with an increase of 4.8 per cent.

The North East experienced the largest negative price movement this month with a change of -1.0 per cent.

Price change by county

Brighton and Hove is the county with the highest annual price change with an increase of 14.7 per cent. Seventeen 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.

Torfaen experienced the strongest monthly growth in March with an increase of 3.2 per cent.

Hartlepool had the most significant monthly price fall during March with a movement of -2.9 per cent.

Bracknell Forest, Cardiff, Nottinghamshire, Slough and Southampton exhibited no monthly price movement.

Price change by metropolitan district

The metropolitan district with the highest annual price increase is Bradford, rising by 10.4 per cent.

The highest monthly price increase was in Wolverhampton, with a rise of 2.6 per cent.

South Tyneside experienced annual growth of 0.7 per cent, making it the lowest performing metropolitan district in terms of annual price change this month.

Rochdale experienced the largest negative monthly price movement, with a fall of 1.0 per cent.

Solihull, Manchester, Dudley, Barnsley and Newcastleupon-Tyne also experienced negative monthly movement in prices in March.

Price change by London borough

The borough with the highest annual price increase is Kensington and Chelsea, rising by 19.8 per cent.

The borough with the highest monthly price increase was Brent, with a rise of 2.6 per cent.

Newham experienced an annual growth of 3.3 per cent, making it the lowest performing borough in terms of annual price change.

Lambeth experienced the highest negative monthly price movement, with a fall of 0.4 per cent.

Sales volumes

In the months October 2006 to January 2007, transaction volumes averaged 102,855 transactions per month. This is an increase from the same period last year when sales volumes averaged 91,205.

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 33 per cent between January 2006 and January 2007, from 377 to 501.

Sales volumes by price range (London)

The number of properties sold in London for over £1 million increased 26 per cent between January 2006 and January 2007, from 237 to 298.