Latest figures show that average house prices were 6.1% higher in July than at the same time in 2009, with the latest figures showing a continued tempering of the high rate of annual growth recorded in recent months.
The average UK house price is now £200,913, compared to £189,344 12 months ago; this is down slightly on the two year high of £201,084 recorded in June.
According to Assetz House Price Watch UK house prices are only 6.6% lower than the peak of £215,089 recorded in October 2007 whilst the 6 month rolling average shows annualised growth of 4%.
The annualised average rates of growth point to continuing market stability, with the six month rolling average now showing 4%. Annualised average data shows that UK house prices have reached more sustainable levels, compared to the large fluctuations witnessed earlier this year.
Stuart Law, Chief Executive of Assetz, comments:
“UK house price growth continued to slow in July, however, prices remain strong despite the very minor slip in month on month figures - indicative of the usual summer slowdown and as a result of the greater than normal confusion over the election period. Average house prices are now only 6.6% below their peak and have climbed by over 3% for the year to date.
“The latest house purchase lending data from the CML also reveals a continued rise in the number of new loans being advanced, pointing to continuing demand from buyers. With the base rate expected to remain at 0.5% for the foreseeable future, even more will be encouraged back into the market, especially now that the economy continues to recover more strongly than predicted in this low interest rate environment.
“The government’s austerity measures are likely to hold down house price growth in 2011 but we are yet to see these cuts reflected in the monthly data. Continued low interest rates and a lack of supply will boost prices this year and for this reason, contrary to most commentators, I still expect to see 5% overall growth for 2010.”
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