Transactions down by a fifth in England but UK house prices continue to grow

Transactions in England fell by a fifth in the 12 months to November 2016 as all parts of the UK recorded a drop in sales, new Land Registry data shows.

Figures from the latest ONS and Land Registry house price index show transactions in the UK in November 2016 dropped 21.2% on an annual basis to 62,482.

Deals in Northern Ireland fell 17.6% to 5,081 while Scottish sales were down 3.2% to 8,594 and in Wales there was a drop of 12.2% to 3,582.

More recent data, from the Office for National Statistics, in the year to January 2017 showed annual house price inflation increased 6.2% across the UK to £218,255, up 0.8% on a monthly basis.

The main contribution to the increase in UK house prices came from England, where house prices increased by 6.5% to £235,000.

Wales saw house prices increase by 4.2% to £146,000. In Scotland, the average price increased by 4% over the year to stand at £142,000. The average price in Northern Ireland currently stands at £125,000.

Meanwhile, in the rental market ONS data shows rents grew by 2.1% in the 12 months to February 2017, slightly down from 2.2% in January.

In England, private rental prices grew by 2.3%, Wales saw growth of 0.5% while Scotland saw zero growth in the 12 months to February 2017.

London private rental prices grew by 1.9% in the 12 months to February 2017, which is 0.2 percentage points below the Great Britain 12-month growth rate.

It was also the first month that the ONS released a new inflation measure including additional housing costs, CPIH. This includes council tax, plus a measure of how much a home-owner would pay to rent their home.

For February the CPIH figure was 2.3%

Commenting on the new data, Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Although some of these figures are historic, particularly the transaction numbers, they do indicate a worrying trend of fewer transactions but prices still rising underpinned by shortages of stock.

“At the coalface we see these numbers, as well as concerns about rising inflation, translating into more caution, longer transaction times and hard bargaining but an improving confidence about getting deals done.”

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