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Property prices continue to fall
House price inflation in England and Wales dropped sharply in December, according to the Land Registry. Average prices fell 0.4% in December, bringing the annual inflation rate down from 8.1% in November to 6.7% last month. The December fall was the first recorded by the Land Registry since August 2005, although prices grew in three individual regions. It said the latest data was "a clear indication of a weakening market". The average house price was £184,469 in December compared with £186,009 in December. 'Downward trend' Most regions showed monthly price falls, with the largest drop of 3.3% recorded in the East Midlands. Annual price inflation in the region now stands at 0.5%. The largest monthly price growth was seen in the North East, at 2.2%. Prices also grew by 1.1% in the East and by 0.6% in London. The capital is still showing the highest annual price change at 14.3%, but the Land Registry said that was a result of very high price growth experienced at the end of 2006 and beginning of 2007, the effects of which would shortly drop out of the index. The average price in London in December was almost twice the average for England and Wales at £354,625. The volume of transactions was also down on the same period last year, with an average of 103,374 per month in the months of July to October 2007, compared with 117,086 per month from July to October 2006. "This month's data provides evidence of a downward trend in house prices," said the Land Registry. "Although the annual growth rate remains positive, this month's fall is a clear indication of a weakening market," it added. No one has commented on this article. |
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