7 regions defy house prices drop
HOUSE prices are continuing to fall as 2010 draws to a close, figures showed yesterday.
But several regions are bucking the trend and experts say 2011 could see a return of price growth.
Data for November recorded a fall of 0.6 per cent in the average price of a home – the third month in succession that values dropped.
The latest downward movement means the cost of a typical three-bed semi in England and Wales is £164,773, the Land Registry reported.
However, the annual house price growth rate is a more positive 2.2 per cent. In the past 12 months, seven regions (London, South-west, South-east, Yorkshire & The Humber, West Midlands, East Midlands and the East) have recorded rises.
Paul Hunt, of mortgage technology company Phoebus Software, said: “The market is in better shape than in 2009. Average prices and sales volumes are up year-on-year and the pace at which prices are dropping hardly represents a crash.
“Price growth could return if borrowers’ finances hold up and lenders respond by loosening their criteria.”