Land Registry data shows annual house price decrease
9th March 2011

Figures released for the past year by the Land Registry has shown that average house prices in England and Wales has fallen by 0.9 percent over the past year. However, the tide looks slowly set to change as we reach the first quarter of 2011, as there was an increase of 0.2 percent between December and January.

The average value of a home in England and Wales now stands at £163,177. Although the Land Registry figures for 2010 were not entirely optimistic, London bucked the trend, experiencing an overall increase of 2.4%. Dare we suggest this may have had something to do with exorbitant banker's bonuses pushing up the prices of properties at the higher end of the market.

However, bad news for some will come as good news for others, with buy to let landlords looking to snap up properties which have fallen well below typical market value. This is specifically prominent in Wales currently with an annual price fall of 6.1% last year. This will leave you with plenty of money after the purchase to spend on property insurance as well as any renovations which need to be carried out.

Although the figures for the past year are gloomy for many homeowners, the market is beginning to look slightly more buoyant with a 0.3% increase in house prices in February compared to January. Robert Gardner, chief economist at Nationwide, reported: "The overall picture is still one of a market treading water. Indeed, the three month on three month measure of house prices, a better indicator of the underlying trend, was basically flat in February at -0.1%. However, these figures should not come as much of a surprise as the economy looks likely to remain sluggish for the rest of the year".

If you are looking to take advantage of deflated market values and buy a house in the coming year, you will need property insurance. Contact Property Cover Plus and see what a great deal we can find you.