House prices reach August 2007 levels
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The average house price reached the same level as that seen in August 2007 after house prices rose for eleventh consecutive month, according to the latest house price index from Acadametrics.
Acadametrics, whose index is based on transaction prices and Land Registry data, has estimated that house prices rose by 1.1 per cent in March, meaning the average house price now stands at £227,788 in England and Wales, 13.4 per cent higher than a year ago.
The data shows that there were approximately 10,000 more houses sold in February than in January, but the estimated 45,000 transactions in February is below the average of 51,570 transactions per month during 2009.
The average house price in London reached £376,605.
Acadametrics chairman Dr Peter Williams says: “The average price of a home in England & Wales is now £227,788. At this level, it is still down £4,040 or 2% from its peak in February 2008 of £231,828, but prices have recovered significantly and the index is showing a 13.4% increase over the last twelve months, albeit based on reduced volumes and with some parts of the market such as first time buyers much diminished because of the shortages of mortgages.
“The evidence is beginning to suggest that the rate of change in the annual price index is falling, raising the possibility that prices may begin to stabilise at their current levels.
“At the same time it is clear that London prices are gathering momentum, and if we exclude London from the aggregate England and Wales figure of £227,788 it drops back to £204,521 with London increasing on an annual basis faster than the rest of England and Wales.”
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