Property Prices: Lower Than This Time Last Year



London is the most expensive region

London is the most expensive region

The latest UK house price index statistics from the Department for Communities and Local Government have shown that residential property in the United Kingdom has increased risen in price by 0.6% in October, but compared with a year ago they were still down by 0.4%.

Recession

Analysing the figures on a quarterly basis showed that the on average house prices had increased in value by 0.6% by the end of October, compare this to the fall of 0.6%  was witnessed over the three months preceding July. Taking the both figures has left the market where it was over half a year ago.

The housing market has suffered massively after the recession, where many could not afford to pay their mortgages and the loans take out where much too expensive to pay. With the market at present being buyer friendly, many are still not making the big step over uncertainty of how the economy will perform.

Looking at the figures across the entire year, the prices of property have fallen in the majority of counties in the United Kingdom. This reconfirms the struggle the market is having in attracting new buyers and having more properties on the market.

In England prices were lower by 0.2%, in Wales they were down by 0.5%, and in Scotland they were down by a much greater 1.5%, however it was Northern Ireland who witnessed the biggest drop of 12.1%.

The prices which were paid by those people just stepping on the property ladder  were 0.4% higher than those former occupiers who paid 0.7% less. October was also the month that saw the prices that first time buyers pay fall by 0.4% on average, in October last year the figure was 0.7% for the same statistic.

However, a little sign that the market is beginning to pick up was the statistic that revealed prices for new properties were 12.1% higher on average compared to the same time last year. The monthly changes which are seen in prices reflect the price changes in new build properties which are more volatile in general, this an affect coming from low transaction levels.

London

As to be expected, in the entire English region London came out on top for the highest house price on average, with  a property costing around £346,729. Compare this to the North-East where the lowest house price on average is £130,891.

While the economy is in the state it is the housing market will also suffer due to people have reduced spending power and also because of the lack of big luxury purchases.

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