Assetz® News - Assetz House Price Watch June

Assetz House Price Watch June

18th June 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

MAY 2010: ANNUAL HOUSE PRICE GROWTH OF 7.8%

•Annual house price growth of 7.8% in May - down from 9.1% recorded in April

•The average UK house price is now £200,347 compared to £185,874 12 months ago

•House prices are now just 6.8% lower than their peak in October 2007 (£215,089)

•Annualised growth currently settled at between 6% and 7%

The latest figures from Assetz House Price Watch show that average house prices were 7.8% higher in May 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 the average house price in May was £200,347, representing annual growth of 7.8% from May 2009 – falling back from the high rate of annual growth recorded in April (9.1%). Despite the reduced rate of annual growth, average prices continued the steady rise seen over the last 12 months, remaining at the highest level recorded in nearly two years (July 2008).

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 monthly snapshots.

The six month rolling average continues to indicate a period of market stability, with figures maintained at a sustainable level, fluctuating only 1-2%, for the year to date. This is in stark contrast to data recorded during 2009 when the market began its correction.

Stuart Law, Chief Executive of Assetz, comments:

“Since the start of 2010, the annualised House Price Watch data has been pointing towards a more stable outlook for the market and this is now being reflected in the monthly figures recorded across the indices.

“As expected the rate of UK house price growth slowed in May. However, it still remains at a robust level with the average house price climbing for the fourteenth consecutive month, barring a very minor fall during the usual slowdown in December.

“Average house prices are now less than 7% below the peak recorded in 2007 and they have climbed by over 3% for the year to date. All signs suggest that this figure will continue to edge up slowly to reach my prediction of 5% growth for 2010 as a whole.”

-Ends-

Notes to Editors

Issued on 18 June 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

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/5220.html. Alternatively, please see our full press release archive.