House prices predicted to rise in 2011

As outlined by the Land Registry property prices both in England and Wales raised to some extent in August, up .3%, which is the greatest this figure has been for two years.

This ever so slight increase is in reality much less of a rise when put next to the preceding month. This leaves the average residence costing £167,423 which is actually equal to the average residence in 2008. Regardless of the fifth sequential month on month increases, the annual rate of growth declined to 6.7% from 6.8% in July.

Nationwide claimed price levels dropped by .9% during the month, even though the Council of Mortgage Lenders said lending appeared to be at its lowest level for that month for 10 years, and HM Revenue & Customs noted a 6% slide in transaction levels. For some economists the real estate market is actually moving downward as the country heads towards another recession. The issue here is that as the government closes its purse strings far more people will be made redundant so there is likely going to be more property on the market for sale. Additional people are likely going to want to sell their houses as they opt to down-size their dwellings in order to manage with the ever escalating costs of living.

Nevertheless the Land Registry index has a tendency to lag behind alternative indexes by around three months, as it calculates prices at the finish of the home buying process, so the newest recession in the marketplace is not yet being shown in its data. The headline information also hides varying regional disparities as prices in Yorkshire and Humber show a fall of 1.4%. Figures have also been down for the East, North West, North East and South West. Only London, up11.4%, and the South East, up 9.4%, show any sign of growth. In June 2010 the Land Registry recorded 59,390 homes changed hands which was the greatest since December 2009 when transactions were increased by the end of the temporary suspension of stamp duty. However, reports on mortgage lending and approvals for house purchase together with data from HMRC suggests that any increase was smothered later on in summer.