House Prices see small monthly gains

Another index has suggested a small monthly increase in house prices in England and Wales – even though the annual rate of growth for most regions is still just in negative territory.

Richard Sexton, director at e.surv – which commissioned the price research – comments: “House prices in England and Wales saw a slight increase this month, rising by £620 (0.2 per cent) to reach a level last seen in February 2022. This marks only the second time in the past 15 months that prices have grown by more than 0.1 per cent.

“The three areas with an overall positive change in growth rates were the North East, Greater London and the South West. In December, for the fourth month in succession, the North East has the highest rate of price growth of all the 10 areas.

“Our own experience is that market sentiment is improving. The combination of better news with regard to mortgage approvals in December and the holding of the bank base rate at 5.25 per cent will encourage buyers.

“We, of course, have a Budget in less than a month’s time and all parties are looking at how they can better support the housing market. Housing remained fifth in the Ipsos Mori issues index, but its score edged upwards, suggesting that it is becoming more important to voters and this may be significant when it comes to the allocation of any public investment decisions.”