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Transactions up 4% annually as house prices return to tepid growth

  • 18/12/2017
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Transactions up 4% annually as house prices return to tepid growth
Transactions were 4% year-on-year in Q3 2017, while average property prices saw their first monthly increase since March, according to Your Move’s latest England and Wales House Price Index.

Transactions in November were at an estimated 77,500, a marginal increase year-on-year.

Meanwhile, the average value of a home in England and Wales in November increased by 0.9% year-on-year to £300,859.

However, despite the return of monthly growth saving the market from recording an annual decline – growth remains weak.

Taking into account the price falls since March, average prices remain some £5,000 lower than the peak of £306,063 seen earlier this year.

In addition, the 0.9% annualised growth was the lowest since April 2012.

Compared to the 6.3% annualised price growth seen a year ago, Your Move said that the most recent figures are a continuation of the “consistent downward trend begun in June”.

Property values in the capital and the South-East region are dragging on the rest of the market. Your Move said that annual price increases jumped to 3.3% if London and the South East were removed from the calculation.

John Tindale, Acadata housing analyst, commented: “Most of the country is still seeing positive movement in prices, albeit maybe not as exciting as 6 months ago.”

“A major exception is Greater London, which is the only region seeing a decline in prices,” Tindale continued.

Moreover, the slowdown that started in London may have started to spread to the East of England. The East led growth across England and Wales in August, but is now is sixth place with growth of 2.8%.

Your Move also highlighted that the market is showing some encouraging signs. The index said that despite the “relative underperformance” of London, the slowdown in the capital appears to be easing.

It also noted that buyers in the coming months will benefit from the stamp duty exemption announced in the budget.

“I think that London is going to change fairly soon,” said Tindale.

He added: “We’re seeing more transactions taking place in Prime Central London – and once you start getting movement at the top end of the market, that tends to oil the wheels and enables more transactions further down the chain.

“We’re going to see London coming back, which is going to boost the overall movement in house prices upwards.”

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