House Price Update to 2 March 2011

UK House Prices Situation: South east healthy, regions suffering

UK House Prices Forecast: More of the same this year as public sector cuts bite

Land Registry Figures Show Growing Regional Divides

The Land Registry has just published its house price index for January. This shows a growing divide between the relatively prosperous regions of London and the south east and the rest of England and Wales.

Annual growth for the year to January 2011 was 2.4% in London and approximately 0% in the East and South East of England. The South West saw a slight fall (-0.4%) but this was fairly insignificant compared to the annual falls observed elsewhere in England and Wales:

• Wales: -6.1%
• Yorkshire & Humber: -2.6%
• North East: -2.5%
• North West: -2.1%
• East Midlands: -1.9%
• West Midlands: -1.4%

Remember, the Land Registry tracks actual completed sale prices against previous sale prices for the same property – so these changes are a true reflection of the way in which house prices have changed.

Overall, the Land Registry reported an increase in average house prices of 0.2% in January following a fall of 0.9% over the last year.

Nationwide Reports Prices Up 0.3% In February – But Down On Year

Average house prices in the UK rose by 0.3% in February, according to the latest house price figures from mortgage lender Nationwide. Despite this, house prices still ended the period 0.1% lower than a year ago.

Robert Gardner, Nationwide's Chief Economist said: "The overall picture is still one of a market treading water. Indeed, the three month on three month measure of house prices, a better measure of the underlying trend, was basically flat in February at -0.1%."

Read about UK House Price indexes / key statistics that track the ups and downs of house prices

Read our take on the Credit Crisis the effect on UK House Prices and Mortgages. A Special Report

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