The Land Registry’s results represent the first monthly rise since January 2008, increasing by 0.1% and bringing the average price of a home in England and Wales up to £153,046. The rise follows a 0.2% fall in May.
The annual rate of decline has now narrowed to 14% from 15.9% in May. London experienced the greatest monthly rise of 2% which brought the average property price to £301,859 while areas of the North continued to see falls.
According to the Nationwide House Price Index, prices rose for the third consecutive month in July.
The lender’s figures show the average price of a property rose by 1.3% over the month from £156,442 to £158,871, while the three-month figure increased from 1% in June to 2.6% in July
Stuart Law, chief executive of Assetz, said the results showed that house prices had bottomed out and that the overall market is improving.
He commented: “The figures provide further evidence of stabilising prices. It should be seen as another positive sign of improvement. I expect house prices to show continued strength on a monthly basis across all of the major indices during the third quarter of this year.”
However, Nick Hopkinson, director of Property Portfolio Rescue (PPR), disagreed and said the market has virtually ground to a halt.
He added “The mortgage market remains effectively closed to most potential buyers, unemployment is rising daily and the wider recession continues to get worse. It is hard to see any sustained house price recovery against this backdrop in the next year, even for prime properties.”
