January house prices show slight increase

House prices in England and Wales increased by 0.9 per cent in January according to the latest monthly figures from Land Registry.

The increase takes the average house price to £186,045. However, the data shows a decline in annual house price changes, from 6.7 per cent last month to 6.4 per cent this month. London experienced annual price growth of 13.1 per cent, with the average house price for January standing at £357,976. The largest monthly growth was seen in the North West with an increase of 2.0 per cent, taking the average house price there to £139,362.

The volume of transactions was down on the same period last year, with an average of 100,648 per month in the months August to November 2007, compared with 117,173 per month from August to November 2006.

Price change by region

All regions in England and Wales experienced increases in their average price over the last 12 months.

The region with the highest annual price change is London with an increase of 13.1 per cent.

The region with the lowest annual price rise is Wales, with an increase of 1.3 per cent.

The North West experienced the highest monthly rise, with an increase of 2.0 per cent.

Wales experienced the only negative price movement this month with a change of -0.3 per cent.

Price change by county

Greater London experienced the highest annual price change with an increase of 13.1 per cent. Six other counties and unitary authorities also exhibited annual price increases of 10 per cent or more.

The City of Nottingham experienced the only negative annual price change of -0.1.

Blaenau Gwent experienced the strongest monthly growth in January with an increase of 3.3 per cent.

Monmouthshire had the most significant monthly price fall during January with a movement of -1.7 per cent.

Sixteen county and unitary authorities exhibited no monthly price movement.

Price change by metropolitan district

The metropolitan district with the highest annual price increase is Oldham, rising by 12.1 per cent.

The highest monthly price increase was in Manchester, with a rise of 2 per cent.

Knowsley experienced annual growth of 0.6 per cent, making it the lowest performing metropolitan district this month.

Liverpool had the most significant monthly price falls during January with a movement of -1.1 per cent.

Price change by London borough

The borough with the highest annual price increase is Kensington and Chelsea, rising by 24.3 per cent.

The boroughs with the highest monthly price increases are Hillingdon and Harrow, both with rises of
1.4 per cent.

Havering experienced an annual growth of 7.3 per cent, making it the lowest performing borough in terms of annual price change.

Barnet, Haringey and Havering all experienced the most significant monthly price falls during January with movements of -0.2 per cent.

Sales volumes

In the months August to November 2007, transaction volumes averaged 100,648 transactions per month. This is a decrease from the same period last year when sales volumes averaged 117,173.

The pattern of reduced 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 timelag in registering 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 2 per cent between November 2006 and November 2007, from 552 to 563.

Sales volumes by price range (London)

The number of properties sold in London for over £1 million decreased by 5 per cent between November 2006 and November 2007, from 287 to 273.