House prices rise 0.8% in July

[Waldorf]

House prices are over valued, the Bank of England pumping billions into the economy plus all time low interest rates have stopped market forces working in the recession, we have too much debt, both government and private and until this is resolved, long term house prices will move south.

[Martin@AS Financial]

I am always a little sceptical of these kind of reports as different institions always come out with competing findings. This is the latest from the Land Registry:

(Taken from Mortgage Strategy)

The average cost of a home in England and Wales rose 0.8 per cent from £161,777 to £162,900 in July according to the latest market trend data from the Land Registry.

The registry’s House Price Index reveals a 0.8 per cent between June and July and an annual increase of 0.3 per cent, with the strongest gains made on homes in London. The latest figures also show that, during April, the number of completed house sales in England and Wales decreased by 19 per cent to 41,244 compared with 50,721 in April 2011.

Average property values in London rose 6.3 per cent annually while house prices in Wales grew the fastest on a monthly basis, by 2.5 per cent.

SPF Private Clients chief executive Mark Harris says: “The Land Registry data is less gloomy than some of the other house price indices and yet the housing market in parts of the country really is suffering. The jury is still out on whether the Bank of England’s emergency funding will have the desired effect, resulting in cheaper mortgages, making it easier to get finance.

“While Swap and Libor rates have fallen in the past week to equal record lows, Nationwide has risen some of its fixed rates to cope with service issues. We expect others to follow suit if their own service levels begin to falter, which will make it trickier for borrowers.”

Prices fell fastest, on both a monthly and annual basis, in Yorkshire & The Humber, by 0.3 per cent and 1.9 per cent respectively.