Hometrack study finds house prices fell by 1.3 per cent in 2005 |
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Published
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Mon, 19 Dec 2005 17:05
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LONDON: House prices fell by 1.3 per cent in 2005, according to findings in a survey by property research company Hometrack. The survey, which covered 7,500 estate agents, found average house prices rose in only three counties and six cities over the past 12 months. In other areas, prices either remained flat or registered minor falls.
Central London and the City recorded a 1.8 per cent increase in prices to an average of 420,600 pounds in December from a year ago.
The prices rose 0.4 per cent to an average of 111,000 pounds in West Yorkshire and 0.1 per cent in Derbyshire to 125,800 pounds.
Derby topped the list of cities recording a rise in prices with a 1.3 per cent increase, followed by Bradford, Leeds, Hull and Newport. The survey covered 54 cities and it found that prices registered minor falls in 48. Milton Keynes had the highest fall, 7.2 per cent, followed by Lincoln, 6 per cent, Leicester, 5 per cent, and Plymouth, 4 per cent.
Among the counties, Leicestershire had the highest fall -- 3.6 per cent.
Hometrack's director of research Richard Donnell said 2005 saw the lowest growth in house prices over a decade. "Despite signs of improving demand over the autumn, buyers are still price sensitive and we expect values to rise by just 1 per cent in 2006."
Donnell said the study indicated a re-alignment of incomes and house prices as a result of the under-performance in London house prices over recent years. He said areas adjacent to the key employment centres -- the City and Canary Wharf -- are now showing price increases, while the outer London boroughs are feeling the impact of the re-alignment process.
Hometrack figures had been under scrutiny as it had seriously underestimated house price growth in 2004.
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House prices are falling 