House Prices rise in October 2007
Thursday, 15th November 2007
The index clams the figure is up from 0.3% in the previous month and that, on an annual basis, prices increased by 8.9%.
This is down from 10.1% in June and the lowest annual growth rate since January.
The index, carried out by research specialist Acadametrics on behalf of the FT, reveals London remains out of step with the rest of England and Wales.
The capital shows an annual growth rate of 17.8%, averaged over the last three months. This is nearly double the next highest region.
Outside London, the South-West saw an annual rise of 9.4% and the South-East an increase of 9.5%.
The index, which uses Land Registry data, reveals widespread evidence of the market slowing.
The all region annual rates suggest that the market turned in around May or June.
Dr Peter Williams, chairman of Acadametrics, says: “The annual rate of house price inflation has fallen by more than 10% over the last four months.
“Monthly rates are subject to fluctuations and we would see the October figure as something of a blip set against the continuing fall in the annual inflation rate.”
He adds: “On the basis of this evidence and the wider market data available, we would expect to see further reductions in the rate of house price inflation come through as we move towards the end of the year.“
Williams says that stripping London out of the assessment brings the overall monthly increase for England and Wales down by 0.2% to 0.5%, and the annual rate to 6.6% - more than two percentage points lower.
Williams adds: “The data suggests that the market turned in around May or June and that we have been seeing reductions in the underlying annual rate of house price inflation since then.
“What we are witnessing is a market in transition - albeit at this stage it is hard to predict where it might settle.”