The monthly house price index, which contains data provided by the Land Registry, has seen a 1.3% drop in average price for England and Wales properties. The sample was taken from April, 2010 to April, 2011. This recent development in the market has decreased the average price value to £163,083 for the aforementioned properties. The northeast region saw the greatest decrease of all with an 8.1% drop. Despite drops across the country, London experienced 3% and 5% increases.
Not only have home values decreased over recent months, sale frequency has seen a steep decline as well. In February 2011, there were 38, 336 homes sold in England and Wales. This is a far cry, a 10% drop to be exact, from the 42,515 homes that sold in February, 2010.
Director of London estate agents Sanfords, Andrew Ellinas, cites, “unprecedented buyer demand” as the catalyst in the decline of English housing prices. Fertile areas of London, such as Regents Park and Marylebone, has seen a sudden emergence of hopeful buyers significantly shake up the going home rates.
Ellinas added, “Paradoxically, the number of first-time buyers is also up 25% on this time last year, with wealthy families increasingly financing these property purchases which they view as long term investment for their future. As a result, the average age of a first time buyer in prime London is now only 23 compared to 37 nationwide.”