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Land Registry: London leads house price growth

Land Registry: London leads house price growth

Wednesday, 30 May 2007 12:00 AM

House prices in England and Wales were up by 0.6 per cent in April driven by large increases in London, the Land Registry reveals today.

In April, London house prices increases at more than double the rate of the next closest region, rising 1.3 per cent over the month compared with a 1.1 per cent increase for Wales.

London's annual house price growth is also well ahead of the rest of England and Wales' regions, at 15.6 per cent compared with the south-east's annual inflation of 9.6 per cent.

By contrast house price in the east Midlands have risen six per cent over the same 12 month period.

However, house prices in four regions fell in April, with Yorkshire and the Humber experiencing the largest fall at 1.1 per cent, followed by the north-west (down 0.5 per cent), the south-west (down 0.3 per cent), and the north-east (0.2 per cent). House prices in the West Midlands stayed level.

"The April data shows the current rate of increase for London house prices is over six
per cent per annum greater than that of England and Wales as a whole," the Land Registry noted.

"This is the largest divergence in the last two years, when London lagged behind the rest of the country by approximately six per cent.

"The divide in annual growth between London and England & Wales has averaged 3.6 per cent over the last six months. The average price for Greater London in April 2007 stands at £333,785 whereas the average price for England and Wales is £179,935."

"The Land Registry figures are yet another reminder that the housing market was slowing, even before the latest rate rise," commented Nicholas Leeming, director of Propertyfinder.com.

"In some regions, house prices are actually falling - the moderate 0.6 per cent growth from March to April was buoyed by prices in London and the south-east.

"Since April the market has had to contend with another rate rise, as well as the surge in supply prior to the Hips [home information packs] debacle. May has seen a series of hurdles for an already flagging market. It is quite clear that the housing market has already responded to higher interest rates."