Housing market sees lowest growth for 10 years

by brian_turner

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Figure from the Land Registry show house prices growing at their weakest rate for almost ten years. Prices in England and Wales, for the three months to June 2005, were only 5.4% higher than at the same time last year, with an average price of Â£184,924. In the three months to June 2004, annual house prices grew 17%.

The Office of the Deputy Prime Minister (ODPM) said annual house price inflation was 5% in June, a significant decline from 6% in May. The ODPM said that annual house price growth was weakest in London and the south east.

The housing market in London showed slight growth, however, with house prices increasing 1.8% in the year to June, compared with a 1.6% increase in May.

All other parts of the UK recorded a decline in annual house price growth, according to the ODPM.

According to the Land Registry, the volume of property sales continued to decline with a drop of 27.7%. This was, however, an improvement on the first three months of the year when they fell 34.8%.

The figures show price growth in the UK at it weakest level since July to September 1996, when prices increased 5.2% to an average of Â£73,559.

Land Registry figures are based on completions rather than mortgage approvals and are, therefore, usually not as up to date as those of banks and building societies.

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Story link: Housing market sees lowest growth for 10 years

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