Money News

House prices rise for first time in 18 months

The average house price has risen for the first time since January 2008, according to official figures.

House prices increased by 0.1% in June, according to figures from Land Registry (www.landregistry.gov.uk). This is the first time that the monthly change has been positive since January last year.

This increase means the annual house price fall now stands at 14% and the average house price is £153,046, the Land Registry reported yesterday.

The Land Registry figures are based on completed sales during the month and reinforce recent data from Nationwide that suggest we may have reached the bottom of the housing market.

The figures also showed:

• London house prices saw the greatest monthly rise in June. Prices rose by 2%, taking the average house price to £301,859.
• In the last 12 months the region that experienced the biggest price drop was the North East, with a fall of 15.9%.
• In April 2009 (the most recent month for which sales figures are available) the number of completed house sales was 36,233, which is 42% fewer than in April last year.

Chris Eagle, commercial manager at CreditChoices.co.uk, said: “It’s impossible for anyone to call the bottom of the market, especially when the economy is facing increased unemployment levels.

“However, this nominal increase in house prices is a positive sign.”