House prices rise 0.4% in September

House price change in England and Wales has stayed positive for residential property transactions that completed in September 2007, according to figures from the Land Registry.

The 0.4 per cent rate of monthly price appreciation is close to the 0.5 per cent average increase of the previous four months.

The change raises this month’s average house price to £183,896. The annual increase in house prices of 8.7 per cent however is a noticeable dip from the 9.3 per cent average annual increase of the previous four months.

Average annual price change

The evidence of the divergent performance between regions persists.

The September data shows that for the sixth consecutive month, the rate of monthly increase for London house prices remains clearly greater than that of England and Wales as a whole.

London's average house price for September 2007 stands at £354,272 whereas the average price for England and Wales is £183,896.

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 16.5 per cent.

The region with the lowest annual price rise is the West Midlands, with an increase of 4.1 per cent.

Yorkshire & The Humber experienced the highest monthly rise, with an increase of 2 per cent.

The West Midlands experienced the largest negative price movement this month with a change of -0.7 per cent.

Price change by county

Greater London experienced the highest annual price change with an increase of 16.5 per cent. Twenty-five 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.

Gwynedd experienced the smallest annual price change, with a movement of 2.6 per cent.

Flintshire experienced the strongest monthly growth in September with an increase of 1.9 per cent.

Neath Port Talbot had the most significant monthly price fall during September with a movement of -2.1 per cent.

Five county and unitary authorities exhibited no monthly price movement.

Price change by metropolitan district

The metropolitan district with the highest annual price increase is Calderdale, rising by 9.9 per cent.

The highest monthly price increase was in Salford, with a rise of 2.3 per cent.

Doncaster experienced annual growth of 2.0 per cent, making it the lowest performing metropolitan district in terms of annual price change this month.

Sandwell had the most significant monthly price fall during September with a movement of -0.9 per cent.

Price change by London borough

The borough with the highest annual price increase is Kensington and Chelsea, rising by 30.5 per cent.

The borough with the highest monthly price increase is Hammersmith And Fulham, with a rise of 2.4 per cent.

Redbridge and Bexley both experienced an annual growth of 9.1 per cent, making them the lowest performing boroughs in terms of annual price change.

Bexley experienced the most significant monthly price fall during September with a movement of -0.2 per cent.

Sales volumes

In the months April to July 2007, transaction volumes averaged 102,367 transactions per month. This is a decrease from the same period last year when sales volumes averaged 109,316.

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 reported 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 by 44 per cent between July 2006 and July 2007, from 615 to 888.

Sales volumes by price range (London)

The number of properties sold in London for over £1 million increased by 43 per cent between July 2006 and July 2007, from 369 to 529.