News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the October / November 04 issue RPI news archive

House prices down, annual rise continues - October / November 2004

House prices fell by 1.1 per cent in October according to the latest Halifax house price index.

The annual rate of was put at 18.5 per cent, the first time it has dipped below 20 per cent for six months. On a quarterly basis, house prices fell by 0.4 per cent between July and October ­ the first fall on a three-monthly basis since the last quarter of 2000.

The figures confirm the trend of the last few months that indicates a slackening of the housing market although no widespread panic. In fact there were tentative signs that the ratio of house prices to earnings may have peaked, said the Halifax. The figure was put at 5.63 in July but 5.57 in August (the latest available figure).

'The housing market seems to be moving into a slowdown following the period of strong growth in 2003 and early 2004', said Halifax chief economist Martin Ellis. 'The rises and falls we have seen in prices in recent months are part of the ebb and flow of the market as it finds a new base'.

Continued annual increases in the price of houses was confirmed in the latest figures from the Land Registry. Based on actual transactions, these put the average price of a house in England and Wales at just short of £188,000 in the quarter to September ­ a rise of 16.3 per cent on the same quarter last year. Old terraced houses moved up the fastest ­ by 19.7 per cent. Old flats and maisonettes increased in value by 15.5 per cent and old semi-detached houses by 17.4 per cent. Generally new properties rose less quickly, with the price of new flats and maisonettes actually going fractionally down on the year.

Hottest area price-wise was Wales where the value of property grew by 28 per cent on the year, although the number of actual transactions was down by 8 per cent. The North (up 24 per cent), North West (26 per cent), and Yorkshire and Humberside (25 per cent) also saw strong growth in house prices.

Greater London (10 per cent) and the South East (12 per cent) were the areas at the foot of the table, although the number of transactions increased most in the South East (by 10 per cent) and Greater London (9 per cent).
 

other artilces from the October / November 2004 issue

• Speaking on behalf of landlords
• Wales for high returns, Scotland for potential
• Irish landlords must register
• In brief
• House prices down, annual rise continues
• Sentence too lenient
• Repair costs are rising faster than inflation
• Cambridge flats most costly
• Devil is in the detail
• A woman's touch