Land Registry Sees House Prices Nudge Upwards

The latest figures on house prices come from the Land Registry, generally thought to be accurate, but a little out of date. They show that house prices crept upwards, by just 0.1%, in October. In London, where house prices have steamed ahead for most of the year, prices dipped by just over £2,000.

The small rise in prices across the country is seen as more evidence that the property market is definitely slowing down.

The average cost of a home in England and Wales is now £184,346, with annual house price inflation at 8.1%. The 0.1% rise was well below the average for the past 12 months of 0.7%, and annual inflation had been 8.7% in September.

London, having seen the biggest rises for many months, saw the biggest fall in prices in October, with the average cost of a home falling by £2,100 or 0.6%. Nevertheless, London still tops the house price league, with its average house price for October 2007 at £351,039 whereas the average price for England and Wales is £184,346. Wales was the region with the biggest price rise in October, seeing a 2% monthly increase to an average price of £143,649.

A number of reasons have combined to bring the market to a virtual standstill. The actual high prices of houses, the rising cost of mortgages and concerns about the health of the wider economy are among them.

Other reports that show prices falling in October came from Halifax and Hometrack, to support the slowdown theory.

Chief economist at Global Insight, Howard Archer, said: “’Evidence is mounting that the housing market is now cooling significantly in the face of tighter lending practices and the heightened affordability pressure on house buyers coming from higher interest rates, elevated house prices and muted real disposable income growth.” He went on to say: “We expect annual house price inflation to fall back markedly over the next few months. Further out, we think it is most likely that house prices will essentially flatline for an extended period.