According to an article on The Guardian this week, house prices (excluding the capital) are still 16% lower than the peak seven years ago and have only just recovered to the level they reached a decade ago. Do these figures confirm that the boom in London has perhaps twisted headline figures?
London Central Portfolio (LCP) analysed September’s Land Registry data and has revealed that, although the “average house price” in Wales and England was technically £177,299, once the capital’s market is removed, the figure stands at £133,538.
This is 16% below that of December 2007, when the average price paid for home was £158,494, and the typical price paid ten years ago, when the boom was in full swing.
LCP added that if prices were to continue rising at the rate of 3.1% per year, it would take until 2019 to hit the pre-crisis level. It also claimed that the concerns of a national property price “bubble” were “wildly premature”.
LCP’s CEO, Naomi Heaton, explained that UK house prices move in cycles; periods of growth are typically followed by a time of consolidation. She said that we should expect to be entering a new growth cycle, as current prices are only the same as a decade ago and are, undoubtedly, suppressed. They will “inevitably start moving rapidly when sentiment improves and there is clarity over interest rates”. This, Heaton continues, should be embraced as a sign of confidence in the economy, “not a harbinger or disaster”.
What are your predictions for the housing market in 2015?