House prices remain flat in May

Average house prices in England and Wales remained flat in May, showing no monthly change at £183,266, according to the latest figures from Land Registry.

Annual house price growth shows a decline for the ninth consecutive month, with a change of 1.8 per cent.

Average annual price change

London experienced annual house price growth of 6.9 per cent in May, which is over 3 times the rate experienced by England and Wales overall.

The monthly house price growth in London currently stands at 0.8 per cent. This is a higher rate of growth than that experienced by England and Wales as a whole.

The average property value in London currently stands at £354,714, in comparison to the average for England and Wales, which is £183,266.

Price change by region

Four regions in England and Wales, the North East, the South West, Wales and the West Midlands, experienced decreases in their average prices over the last 12 months.

The region with the highest annual price change is London with an increase of 6.9 per cent.

The region with the most significant annual price fall is the North East with a movement of -1.3 per cent.

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

The North East was the region with the most significant monthly price fall with a movement of -2.4 per cent.

Price change by county

Both Greater London and Monmouthshire experienced the highest annual price changes in May, with increases of 6.9 per cent.

Ceredigion experienced the highest annual price fall with a movement of -7 per cent.

Wrexham experienced the strongest monthly growth in May with an increase of 2.4 per cent.

Middlesbrough had the most significant monthly price fall during May with a movement of -3.9 per cent.

Price change by metropolitan district

The metropolitan district with the highest annual price increase is Manchester, rising by 6.7 per cent.

The highest monthly price increase was in Rotherham with a rise of 1.2 per cent.

Newcastle upon Tyne experienced the most significant annual price fall with a movement of -4.4 per cent.

Gateshead had the most significant monthly price fall during May with a movement of -2.4 per cent.

Price change by London borough

The borough with the highest annual price increase is the City of Westminster, rising by 17.2 per cent.

The borough with the highest monthly price increase is Camden with a rise of 1.4 per cent.

Both Redbridge and Hillingdon experienced annual growth of 4.9 per cent, making them the lowest performing boroughs in terms of annual price change.

Harrow experienced the most significant monthly price fall during May, with a movement of -1.7 per cent.

Sales volumes

In the months December 2007 to March 2008, transaction volumes averaged 61,950 transactions per month. This is a decrease from the same period last year, when sales volumes averaged 100,693.

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.

Because sales volume figures for the two most recent months are not yet complete they are not included in the report.

Sales volumes by price range (England and Wales)

The number of properties sold in England and Wales for over £1 million decreased by 45 per cent between March 2007 and March 2008, from 646 to 357.

Sales volumes by price range (London)

The number of properties sold in London for over £1 million decreased by 44 per cent between March 2007 and March 2008, from 351 to 198.