Government study shows house price inflation slows down in February |
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Published
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Mon, 10 Apr 2006 17:40
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LONDON: House price inflation has slowed in February to 3.6 per cent from January's 4.3 per cent, according to the Office of the Deputy Prime Minister. This is in contrast to reports from mortgage lenders, which indicated that property market is indeed reviving.
The ODPM said house prices in London, which set the national trend, rose by a mere 1.9 per cent in February from a year ago, down sharply from the 5.3 per cent reported in the previous month.
The monthly fall in prices has brought the average price of houses to 183,224 pounds from 185,404 pounds in January, said ODPM.
House price inflation rose in Scotland, Wales and Northern Ireland, but fell in back a little in England. It topped in Northern Ireland with 15 per cent, while in Scotland the prices rose 11.5 per cent. Wales too has seen renewed growth -- 6.4 per cent to 6.5 per cent. Yorkshire and north east and north west England saw the prices rise between 7 per cent and 8.6 per cent.
But, in most parts of southern England, the prices have grown in low single digits or are going into the negative territory. The rate for eastern England fell to below zero.
Analysts tend not to accept the data put forth by the government. They point out that there were several other indications in recent months that point to a revitalising housing market. Some of them dismissed the details as blip in an otherwise upward trend.
They also point out that fall in prices is characteristic of February -- which is traditionally the slowest month of the year for the property market. While surveys by mortgage lenders take this annual slackness in the market into account when compiling their data, the ODPM does not.
Besides, the ODPM survey is based on completed sales rather than the asking prices at estate agents or mortgage approvals.
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