Based on the Land Registry property rates both in England and Wales accelerated slightly in August, up .3%, which happens to be the greatest this valuable number has been for a couple of years. In June the number of valuations had increased by 20%.  Today we once again reported on house prices rising but we just don’t believe this continued increase will last.

Can we rely on Land Registry house price figures?

This increase, fifty percent the size of the gain the previous month, left the standard home costing £167,423 – a quantity last noticed in August 2008.

On initial analysis the sum announced by the Land Registry looks favorable yet though the latest amount is the fifth sequential month to month price increase the truth is that the overall annual growth rate dropped by 6.7% from 6.8% in July 2010.

The Land Registry seems to be the only body claiming a rise. The Nationwide’s results revealed a .9% decrease in August, although the Council of Mortgage Lenders stated the lowest lending levels for this 4 weeks in ten years. Even HM Revenue and Customs reported a 6% fall in house transactions.

Some economists have predicted the housing market is actually heading for another recession simply because demand from possible buyers eases whilst an increasing number of houses are being put up for sale. As the United kingdom tightens its belt many people will discover their mortgages much more costly, even more so if they become unemployed. Accordingly, cost cutting and downsizing are very likely going to result in a drop in prices.

But the Land Registry index appears to lag behind different indexes by around three months, as it is the measurement of prices at the conclusion of the home purchasing process, so the current downturn in the marketplace is not yet being reflected in its data.

The headline information also covers substantial regional variances as prices in Yorkshire and Humber show a fall of 1.4%. Figures likewise are 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.

The Land Registry published a 17% jump in property transactions in June, the latest calendar month for which figures can be found. An overall total of 59,390 homes exchanged for the month, the best level seen since December when quantities were improved with the aid of the approaching end of the previous government’s stamp duty holiday.

However, information and facts on mortgage lending and approvals for property purchase in conjunction with data from HMRC shows that any improvement was stopped later on in summer.