Land Registry: Average house price nears £200k

Tuesday, 8 August 2006 12:00 AM

The average house price nudged closer to £200,000 in the second quarter of the year, according to official figures.

Data from the Land Registry shows that house prices were 7.71 per cent higher from April to June than in the same period last year.

The average price is now £199,184, up from £184,924 last year, according to the data which comprises every house sale completed during the quarter in England and Wales.

The pick-up in the housing market during the last 12 months is evident in the increased volume of sales - up 23.76 per cent in England and Wales and by 26.69 per cent in London.

The strength of the market in London has also helped increase the volume of properties sold for more than £1 million to 1,246 from 718 in the same period in 2005.

A total of 795 properties sold for more than £1 million during the quarter were in the capital.

But it is the north of England that leads the way when it comes to greatest increase in prices during the last year.

The north and north-west have enjoyed annual house price increases of more than 11 per cent, while Yorkshire & Humber has seen prices increase by more than ten per cent.

House prices in Greater London are more than eight per cent higher than last year, and now average £317,679 - more than double the average price in the north of £137,861.

Milan Khatri, chief economist for the Royal Institution of Chartered Surveyors (RICS) said: "The figures confirm that the housing market is in a firm state and well placed to shrug-off last week's 0.25 per cent interest rate rise."

However, Mr Khatri anticipates that a likely further 0.25 per cent rise before the end of the year "will lead to a housing to a housing market slowing down next year and will make it even harder for first-time buyers to enter the market".

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