Assetz® News - Assetz House Price Watch July

Assetz House Price Watch July

20th July 2010 |

Assetz House Price Watch is the only fully inclusive summary of all the major UK house price indices, providing a comprehensive analysis of market activity

JUNE 2010: ANNUAL HOUSE PRICE GROWTH OF 7.2%

•The average UK house price is now £200,341 compared to £189,344 12 months ago

•Average UK house price fell slightly from a high of £200,475 in May 2010

•UK house prices are now only 6.8% below their peak

•6 month rolling annualised rate of growth shows 6.6%

The latest figures from Assetz House Price Watch show that average house prices were 7.2% higher in June than at the same time in 2009. Assetz House Price Watch compiles monthly average figures taken from five of the major house price indices to offer a more accurate picture of house price trends.

Data reveals that UK house prices remain stable, with the average price of a home in June at £200,341. House prices remain only 6.8% below the peak of £215,089, recorded in October 2007.

The House Price Watch continues to show a fall in the high rate of annual growth recorded in previous months, down on 7.9% in May and 9% in April. Despite this, prices have climbed over 3% for the year to date.

The House Price Watch provides the most up-to-date view of monthly changes in the annualised growth rate, as well as regularising the data over three and six months. This provides a more reliable representation of market trends than individual monthly snapshots.

The annualised average rates of growth continue to show increasing market stability with the six month rolling average now showing 6.6%, down from a peak of 11.96% in October 2009.

Stuart Law, Chief Executive of Assetz, comments:

“The latest figures from Assetz House Price Watch show that we remain in the midst of a consistent housing recovery. As predicted, however, annual UK house price growth continues to slow to a more sustainable level. Similarly, the latest CML gross lending mortgage figures continue to point to an increase in consumer confidence, with more buyers encouraged to return to the market amid improving conditions.

“The Government’s austerity measures and the rumoured second banking crisis could still dampen house price growth next year. However, the fundamental lack of supply in the market, as a result of a lack of government funding for housing associations and planning restrictions, will continue to drive up prices modestly this side of Christmas and beyond.

‘Mortgage rates are also likely to be kept low for the foreseeable future. I would not be surprised if the base rate is still at 0.5% at the end of next year, although there is a 25% chance it will have increased to 2% in this period. This is great news for homeowners on lifetime tracker mortgages and is likely to encourage even more buyers into the market.

“Current house prices are like a coiled spring, and with the impossible-to-solve housing supply problem I predict another boom period at some point later in the next ten years. For the year in hand, I still expect to see a modest 5% overall growth as the positives continue to outweigh the negatives. 2009 was also an uncertain year but our 5% prediction turned out to be the most accurate in the market at a time when most predicted prices collapsing. We may well see the same again this year.”

-Ends-

Notes to Editors

Issued on 20 July 2010

About Assetz House Price Watch

The Assetz House Price Watch is an overview of the data supplied by the five main house prices indices: Acadametrics HPI (previously FTHPI), Rightmove, Nationwide, Halifax and the CLG (Communities and Local Government).

Assetz believes that individual monthly movements in individual indices from specific providers should not be taken as an indication of the market. Property is an illiquid asset and such minor monthly fluctuations for specific indices are not directly attributable to the sentiment of buyers, but rather more a sample of the data used in that particular month. Therefore there would be an inherent likelihood of it misrepresenting the market as a whole in a single month timeframe.

By taking 12-monthly house price growth data from all transactional indices and then averaging them, it is possible to gather a more accurate picture of how the market as a whole is behaving. The current month’s data is used from each index, wherever possible. If this is unavailable, the most recently available data is substituted.

About Assetz plc

Assetz plc heads up a group of well-known and successful property investment and development companies, delivering carefully selected UK and overseas property as well as property funds, financial planning, education, finance and after-sales service. Assetz offers expertise and peace of mind whether a buyer is seeking an investment or a residential property.

Assetz: 0845 400 9000 or visit www.assetz.co.uk

For further information please contact:

Suman Hughes or Laura Scarrott, The Wriglesworth Consultancy:

020 7427 1400 s.hughes@wriglesworth.com, l.scarrott@wriglesworth.com

Chief Executive’s Blog: http://investors.assetz.co.uk/blog/archives.php

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