Property prices pass peak eight years on
A recent report suggests that house prices are now exceeding their last peak in 2007, before the housing crash and our own figures support that view and separate data appears to show that fewer people are buying with mortgages.
According to the Council of Mortgage Lenders, there were 49,000 house purchase loans made in May – a drop of 15.8% on May last year although up 1.4% on April. Of that number 22,700 loans were to first-time buyers, a fall of 16% on May 2014. There were 17,500 buy-to-let loans, up 1% on April and up 12% on May last year.
Separately, the Office of National Statistics has reported that “average mix-adjusted” house prices in May 2015 stood at £286,000 in England, £170,000 in Wales, £152,000 in Northern Ireland and £193,000 in Scotland.
The highest average house price was in London at £503,000 while the north-east had the lowest average house price at £154,000. Excluding London and the south-east, the average UK house price was £210,000.
A new single official house price index is likely to be launched in the first half of next year, the ONS announced yesterday. It will be published via the Land Registry pages of GOV.UK.
Since the general election in May the number of houses placed on the market has fallen and stock levels are lower than usual, another reason for prices to rise based on supply and demand. However, prices in some areas have actually fallen slightly according to recent national figures, possibly due to the aftermath of the election, international economic concerns and an early start to summer holidays. Although this is regional, it could mean a very busy September!
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Figures courtesy of ONS