No monthly change in December house prices – LSL
01-10-2015
The property market takes a short break in December as prices cool in London and the South East.
House prices slowed down to a stop at the end of last year, showing a 0 per cent change as compared to November, according to the LSL house price index for England and Wales.
The average price for a home in December reached £279,000, which was just £40 more than in November. This pushed the annual growth rate back in the single digits to 9.6 per cent, compared to the 10.6 per cent price increase in November.
This is the first time the market is pausing for a breath since May 2013, set back by a turning trend in London and the South East. If these traditionally high-inflation regions are excluded, prices in December are higher on a monthly basis and stable in an annual comparison.
However, the recent price changes do not emanate only from regional developments, according to Adrian Gill, director of Reeds Rains and Your Move estate agents.
“But it’s not just geography that disrupts the march of house price growth across England and Wales. It is the most expensive properties that are showing the strongest gains in value, while the rate of price growth is slowing among cheaper homes. Properties worth over £250,000 have seen average annual growth of 10.7 per cent. But those valued below £153,000 have typically witnessed a year-on-year price increase of just 2.9 per cent. As the two paths of growth diverge, this is widening the gap between the different rungs of the housing ladder,” he comments.
HPI Dec'14 graph