House prices drop 0.5% across England and Wales

Latest data from the Land Registry shows a drop in house price

Latest data from the Land Registry for March shows a drop in house prices across England and Wales. Only 2 regions, London and East England, saw prices rise but only by 0.2%. Yorkshire and Humberside saw the biggest drop of 2.6%.

The number of completed property sales also dropped in January 5% to 54,254 compared with 56,937 in January 2015 which goes against the theory of a rush of buy-to-let investors flooding the market to beat the new 3% stamp duty tax on second properties.

“We were expecting higher transaction levels in the first three months of the year as the stamp duty deadline approaches. But with the number of completed house sales in England and Wales falling by 5p% in January compared with the same month last year, there does not seem to have been the stampede that many expected,” said Jeremy Leaf, former chairman of Rics (Royal Institute of Chartered Surveyors).

“A decline in number of property transactions continues to be a worry, as if people aren’t able to move in and out of the market when they want to, there will be an inevitable knock-on effect for the rest of the economy. On the ground we want to see more balance between supply and demand,” he added.

Looming Brexit vote is also causing concern as investors and buyers wait for the outcome.

House Price Changes England and Wales March 2016

Region%Change
London+0.2%
East+0.2%
North West-0.1%
East Midlands-0.3%
Sout East-0.4%
England and Wales-0.5%
South West-0.9%
Wales-0.9%
North East-1.2%
West Midlands-2.0%
Yoirkshire and Humber-2.6%

Written by: Houseladder