House Prices Still Rising, But Are Rises Slowing?
In England and Wales, prices rose by an average 9.1% in April, faster than the rate of 8.3% in March.The average home in England and Wales now costs £179,935 - £15k more than 12 months ago.
The Land Registry figures indicate that overall prices are being driven by the London market where the average home now costs £333,785.
New figures from Hometrack for May, however, suggest that the property market is slowing down. According to their figures, the number of new sales rose by 4.6% in May, down from 9.6% in April. The number of new buyers registering with agents also fell.
Expectations are that Bank of England figures tomorrow will show a slowdown in mortgage approvals, confirming a weakening in demand. Last month's interest rate rise is also expected to eventually stabilise soaring property prices. However analysts are yet to forecast when a slowdown in prices rises will occur.
According to Howard Archer of Global Insight, a general property shortgage, particularly in London and the South East will keep prices up. He did suggest that the introduction of Hips (now delayed) had brought more properties onto the market but this was likely to only have a short term impact.
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