UK House prices in September rose by 0.6%

House prices in September rose by 0.6%

The average price of all residential property transactions completed in England & Wales in September 2009 was 0.6% higher than in August. This is the fifth month in succession in which we have seen positive, though modest, growth in house prices.

Prices are now 5.6% lower than a year ago

On an annual basis, the average price of all residential property transactions in England & Wales in September is 5.6% lower than a year ago. The trough in the house price decline, on an annual basis, was reached in April 2009 at minus 13.4%.

Housing transactions slow down

Final figures have yet to emerge for sales in August 2009 but the early indications are that the total number of transactions will be lower than the 59,600 recorded in July 2009. Although, for seasonal reasons, August figures have been lower than July in five out of the last nine years, this is the first fall in monthly sales recorded this year and it could suggest continued vulnerability.

Dr Peter Williams Chairman of Acadametrics said

“The average house price has continued to rise and, at £205,338, is back to where it was in August 2006.

“The monthly price rise of 0.6% contrasts markedly with the 1.8% price drop 12 months earlier in October 2008; the data clearly support the view that the sharpest falls are now behind us and that the market has made a modest recovery, even if it is too early to talk of a sustained upturn.”

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