Data recently released by the Land Registry department, a generally trusted source amongst observers, shows mixed news for property prices across England for the months between August and September, 2014.
The regions have followed London’s recent cooling off and it is the Midlands and the North and South East of the country which has suffered the most from notable decreases.
This data from the Land Registry department coupled with recent analysis from financial institutions Hometrack and the Royal Institution of Chartered Surveyors points to a general consensus that the property market is cooling.
Yorkshire and Humberside recorded the biggest drop, with monthly prices showing a decrease of 2.2%. Next up was West Midlands which recorded a 1.3% reduction, followed by the East Midlands which recorded a 0.8% drop and London which recorded a 0.7% decrease in value throughout the month of September.
The East of the country as well as the South West and Wales were the only regions which did not record a reduction in the average price of properties.
Yorkshire and Humberside have not enjoyed the property price rises that other areas have, and homeowners will not be happy with this most recent piece of news.
Overall London remained strong for the year with high-end property in the capital now considered amongst the most expensive in the world per square foot. Annual growth in the mainstream market dropped back to 18.4% in September though, with an average price now showing as £460,521.
The data released by the Land Registry department is based on property sale prices, and the month of September showed an overall increase of 7.2% throughout the country for the past year, with prices for the average property in England and Wales now priced at £177,299.
Prices have been on the rise which was attributed to buyer demand, ease of access to purchasing credit and the Government scheme known as “Help to Buy”.
A review initiated in April this year known as the Mortgage Market Review proposed future interest rate testing, along with extend property loan application processes and a restriction placed on finance available to contractors, entrepreneurs and freelancers.
As a flow on from this, prospective homeowners have experienced difficulties with accessing purchasing finance, which is considered to be one of the contributing factors to this recent drop, after sustained pressure was applied to buyers and lenders through regulatory pressure.
The potential for future interest rate rises coupled with the uncertainty of a general election next year is also producing a dampening effect, and prices may be about to enter a holding period with the new regulations taking an effect and an election on the horizon.