Peter Rollings, CEO of Marsh & Parsons, comments: Property values were climbing right up to the wire in 2015, giving homeowners a last-minute confidence boost around Christmas. Buyers also had plenty of reasons to feel positive, following the Chancellors Autumn Statement proclamations and the persistence of low mortgage rates. This optimism on both sides of the fence was combining to stimulate activity throughout the housing market.
London house prices have travelled the farthest distance over the past year, with growth well into double-digit territory fuelled mainly via price rises outside prime central London. But the housing market in the capital has also had some of the biggest obstacles thrown in its way, and so were still looking at substantially reduced price rises in the centre. Compared to a year ago, million pound property sales have slipped back 2% in the capital since stamp duty reform levied higher taxes at the middle and top-end of the property market. Both buyers and sellers at that level are having to be more price sensitive, and adjust their expectations. It remains to be seen how the second wave of stamp duty change targeted at buy-to-let investors may similarly distort the London market but in the short-term, well see a rush of demand from landlords and second home purchasers in the run up to April, which means heightened competition for first-time buyers.
Land Registry House Price Index, December 2015
- The December data shows an annual price increase of 6.4 per cent which takes the average property value in England and Wales to 188,270.
- Monthly house prices rose by 1.2 per cent since November 2015.
- London experienced the greatest increase in its average property value over the last 12 months with a movement of 12.4 per cent
- London also experienced the greatest monthly growth with an increase of 2.1 per cent
- The average price of property in the capital is 514,097 in comparison with the average for England and Wales of 188,270.
- The number of properties sold in London for over 1 million in October 2015 decreased by 2 per cent to 752 from 771 in October 2014.
- The North East saw the lowest annual price growth with an increase of 0.8 per cent
- Wales saw the most significant monthly price fall with a decrease of 0.8 per cent.
- The number of property transactions has decreased over the last year. From July 2014 to October 2014 there was an average of 84,517 sales per month. In the same months a year later, the figure was 80,691.
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