Which takes the average property value in England and Wales to £165,505. The monthly change from September to October is a decrease of 0.8 per cent.
Eight regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the highest annual price change is London with an increase of 7.6 per cent. The East experienced the greatest monthly rise with an increase of 1 per cent.
The region with the greatest annual price fall is the North East with a movement of -0.9 per cent. Yorkshire and the Humber experienced the most significant monthly price decrease with a movement of -1.8 per cent.
The most up-to-date figures available show that during August 2010, the number of completed house sales in England and Wales rose by one per cent to 58,783 from 58,270 in August 2009. The number of properties sold in England and Wales for over £1 million increased by 44 per cent between August 2009 and August 2010, from 506 to 731.
Alison Beech, Business Relationship Director, Valunation, comments:
“Land Registry’s October House Price Index has followed the recent negative trend and reported a fall in prices. Uncertainty about the market and concerns over household income and job security is causing an aversion to moving home.
"Some households have little room for financial manoeuvre and find themselves trapped in their mortgages. Would-be first time buyers have little chance of raising a sufficient deposit to obtain a mortgage.
“With banks suggesting this week that mortgage lending will not improve in 2011, the future looks bleak. The FSA’s recent warning that it will require even stricter assessments of mortgage applicants could be the nail in the coffin for this generation of potential first time buyers, which will have a deeply negative impact on the property market as a whole.”
Peter Rollings, managing director of estate agent Marsh & Parsons, said:
“Nationally, the ongoing obstacle of mortgage finance for first-time buyers is still suppressing the housing market and thereby house price growth. In London, the picture is rather different.
"Central London’s housing market operates almost independently from the rest of the country and the capital’s housing market is still enjoying a gradual (and therefore healthy) improvement and house prices are still steadily increasing – rising by 0.3% in October.
"The supply of housing has improved in the last six months, alleviating the shortages that characterised London’s market a year ago, and drove prices up rapidly. But demand has remained strong. In parts of prime central London, nearly three quarters of purchases are by cash-buyers and so far fewer homebuyers are hampered by the mortgage finance famine that is afflicting the rest of the country.
"High end purchases have played a pivotal role in bolstering the market in the Capital, and 39% more properties worth over £1m were sold in August compared to a year ago.
"With City bonus season on the horizon, and demand remaining robust both from UK and overseas buyers, we anticipate that selling prices (as opposed to merely asking prices) will remain strong and London’s market will continue to buck the national trend in the approach of Christmas."
