House prices have risen by 8.7% over the last three months, according to new figures from the Land Registry. Annual growth rate across every region of England and Wales is now more than double that of this time last year. The Land Registry figures point to a stable, strong market but property experts warn that the latest report should be taken with a pinch of salt.
Average house prices across England and Wales broke the £200,000 mark in the third quarter of this year and house price inflation across the country was higher across all parts of England and Wales, according to the Land Registry?s report. London witnessed the highest house price inflation at 10.2% whilst the East Midlands saw the lowest price rises. But property experts believe the figures should be taken lightly. ?The data tells us little that we did not already know,? said Ed Stansfield from Capital Economics, adding that it probably overstates the rate of house price inflation a little.
Last month the Land Registry released a new type of housing market report, based on ?repeat sales? methodology, rather than a sample of all housing transactions taking place at any given time. The new index reported a 6.3% house price rise over the last quarter, compared to 8.7% in today?s report ? still the fastest rate since July 2004.
?Today?s data need to be taken with a pinch of salt, as they are a less reliable guide to short term house price trends than the other main indices, including the Land Registry?s new repeat sales index, released for the first time last week,? confirmed Mr Stansfield.