Slow house price growth in July

House prices in England and Wales exhibit slow monthly growth for residential property transactions that completed in July 2007, according to latest Land Registry data.

Whilst still positive, the 0.1 per cent rate of monthly increase is the lowest rate experienced since June 2006. The change raises this month’s average house price to £181,460. The annual change in house prices is 8.8 per cent.

The growth rate divergence between London and the rest of the country persists. London and to a lesser extent, the South East, continues to ensure positive house price inflation.

Average annual price change

Residential property transactions for London that completed in July 2007 indicate continued monthly growth. With an annual price change of 10.5 per cent, London still leads the rest of the country in terms of house price growth.

The July data shows that for the fourth month in a row the rate of increase for London house prices remains approximately six per cent per annum greater than that of England and Wales as a whole.

London’s average house price for July 2007 stands at £342,936 whereas the average price for England and Wales is £181,460.

Price change by region

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

The region with the highest annual price change is London with an increase of 15.5 per cent.

The region with the lowest annual price rise is the West Midlands, with an increase of 4.5 per cent.

The South East experienced the highest monthly rise, with an increase of 1.1 per cent.

The West Midlands experienced the largest negative price movement this month with a change of -1.4 per cent.

Price change by county

Key county and unitary authority observations

Brighton and Hove experienced the highest annual price change with an increase of 15.9 per cent. Twenty-two other counties and unitary authorities also exhibited annual price increases of 10 per cent or more.

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

Powys experienced the strongest monthly growth in July with an increase of 3.1 per cent.

Blaenau Gwent had the most significant monthly price fall during July with a movement of -2.4 per cent.

Ten county and unitary authorities exhibited no monthly price movement.

Price change by metropolitan district

Key metropolitan district observations

The metropolitan district with the highest annual price increase is Calderdale, rising by 11.3 per cent.

The highest monthly price increase was in St. Helens, with a rise of 1.7 per cent.

Salford experienced annual growth of 2.4 per cent, making it the lowest performing metropolitan district in terms of annual price change this month.

Coventry experienced the largest negative monthly price movement, with a fall of 1.4 per cent.

Price change by London borough

Key London borough observations

The borough with the highest annual price increase is Kensington and Chelsea, rising by 30.9 per cent.

The borough with the highest monthly price increase is also Kensington and Chelsea, with a rise of 2.8 per cent.

Newham experienced an annual growth of 7.1 per cent, making it the lowest performing borough in terms of annual price change.

Redbridge experienced the highest negative price movement this month, with a movement of -0.8 per cent.

Sales volumes

In the months February to May 2007, transaction volumes averaged 92,192 transactions per month. This is a decrease from the same period last year when sales volumes averaged 94,531.

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 and 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 37 per cent between May 2006 and May 2007, from 413 to 566.

Sales volumes by price range (London)

The number of properties sold in London for over £1 million increased by 8 per cent between May 2006 and May 2007, from 280 to 303.