2 Dec

Property prices continue to rise

Property prices continue to rise

The latest figures from the Land Registry show UK house prices rose by 0.1 per cent in October.

According to the latest data, the average property price now stands at £177,377.

In terms of annual price rises, the largest increase was seen in London, with values up by 18.6 per cent over the past 12 months - making the average price now £460,060.

Overall, the past year has seen an average annual increase of 7.7 per cent, but some areas did not perform as well as hoped, although they remain higher than 12 months ago.

The North East saw a 2.7 per cent drop in prices over the month, but are 2.7 per cent higher than at the same point in 2013, with the average home costing £97,356.

Both the North West and the East Midlands also saw a fall in prices during October, but long-term values remain higher than previously.

Up to August 2014, the number of completed house sales in England and Wales rose by four per cent to 82,415 compared with 79,587 in the previous 12 months.

There has also been a sharp rise in the number of properties that are being sold for more than £1 million. Over the past year, this has increased by 15 per cent to total 1,363 from 1,185 in August 2013.

Peter Rollings, chief executive officer of Marsh & Parsons, warned that talk of the introduction of a mansion tax could have an impact on prices in the future.

"Activity levels at the top tiers of the UK housing market have shown healthy growth, with sales of properties worth over £1 million rising 15 per cent in the year to August 2014. But fears of a potential mansion tax could contaminate demand for prime property in the run up to the general election," said Mr Rollings.

He added that a slowdown in the London market could impact on the capital's international reputation and therefore may deter overseas investment in the region.

Mr Rollings also warned that the government needs to ensure it focus on all areas of the country to ensure the improving market is felt across the country.

"While few traces of the financial crisis are distinguishable in London where boisterous annual price growth continues, for places like Wales and the North East, home owners are still waiting to see evidence of the housing recovery, as property values stall," he explained.ADNFCR-1222-ID-801763937-ADNFCR

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