Contradictory news on house prices

The Land Registry and Nationwide paint very different pictures of the state of the housing market.

Two new house price reports have painted two very different pictures of the state of the housing market. The Land Registry said that prices in England and Wales fell by 0.9% in October and are down 3.2% year-on-year. Meanwhile, Nationwide says prices in November increased by 0.4% and have increased by 1.6% annually.

The Land Registry says the biggest annual declines are in the North East of England, where prices are down by 7.2% and the North West, where prices have fallen by 7%. Even prices in London, usually regarded as resilient even in downturns, were down 0.3% in October compared to September. However, London prices have risen by 0.3% in the past year.

The average price of a home in England and Wales is now £159,999, according to the Land Registry, while Nationwide says the UK average is now £165,798, up by just £148 from October.

Home sales slow down

The Land Registry report shows a slight rise in home sales in August, the last month they have data for, following six consecutive months of falls.

Nationwide’s Chief Economist Robert Gardner says he expects house price growth “to remain soft” next year “with prices moving sideways or drifting modestly lower”. Interestingly, he said exactly the same thing after October’s figures showed a modest annual rise of 0.8%.

To add another set of figures into the equation, Lloyds TSB Scotland says that Scottish house prices are now at 90% of their pre-recession peak. It says that Scottish house prices have fallen by 2.9% over the past year.

Yesterday, property analysts Hometrack said that the housing market in England and Wales is at its quietest level for 40 years, as buyer numbers dwindle in the face of tight mortgage lending and high prices.

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