U.K. October House Prices Rise 0.7% as Sales Hit Seven-Year HighScott Hamilton
U.K. house-price growth accelerated in October as the number of properties changing hands rose to match a seven-year high, according to Acadata and LSL Property Services.
The average value of a home in England and Wales rose 0.7 percent to 277,390 pounds ($436,500), compared with a 0.3 percent gain in September, the groups said in an e-mailed report today. Prices increased 10.5 percent from a year earlier. Transactions climbed 9 percent on the month to 90,500, driven by demand outside London.
While demonstrating national strength, the report chimes with growing evidence that London’s priciest districts are losing momentum as record prices and speculation a so-called mansion tax might be introduced curb demand. In September, the most recent month with detailed data for the capital, prices dropped in six of the seven most expensive boroughs including Westminster, Richmond and Camden. Average prices in the capital rose 0.4 percent, the least in 15 months.
“Recent hiccups in the market have not shaken the overall underlying stability” of the U.K. market as a whole, said David Newnes, a director of an LSL unit. “At the very top end of the housing market in prime central areas of London, growth is subsiding.”