Mortgage News
Land Registry: House prices drop 2.2% year-on-year
Property prices fell 2.2% in May 2011 compared to the same month last year, the largest annual fall since October 2009, according to the Land Registry.
Its latest house price index revealed that monthly house prices fell 0.4% between April and May, leaving the average house price in England and Wales at £161,823.
London was the only region in England and Wales to experience an increase in its average property value over the last 12 months, rising 2.9%. By comparison, the North East saw the greatest annual price fall, down 6.9%.
The East Midlands experienced the greatest monthly rise, up 0.4%, while Wales recorded the most significant monthly price fall, down 3.5%.
During March 2011, the Land Registry reported that the number of completed house sales in England and Wales decreased by 13% to 44,803 from 51,399 in March 2010.
The number of properties sold in England and Wales for more than £1m increased by 58% between March 2010 and March 2011, from 511 to 805.
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Nicholas Ayre, a director of UK buying agents, Home Fusion, said: “London is benefiting from its safe haven status, especially given the uncertainty in the eurozone at present.
“London aside, the rest of the UK is increasingly falling into the red. Prices are under real pressure and continuing to decline. The recent spate of high profile insolvencies on the high street confirms just how delicate the economy is and will add to consumer caution and nerves.”
Ayre added that given the overall state of the economy, it could be some time before demand returns.