Demand for smaller properties leads to 1.2% house price rise

House prices rose 1.2% in May, adding £2,100 to the value of an average home, according to government figures issued yesterday. The increase lifted the annual rate of house price growth to 12.2% from 10% the previous month.

The survey is older than some of the survey figures from lenders and estate agents which suggest a slowdown in the market, and is not seasonally adjusted.

The average house price reached £170,719 in May, the government said, price rises were strongest for flats, rising 3.5% month-on-month. For terraced housing the increase was 1.8%. Detached houses were 0.4% cheaper in May, helping the overall monthly rise slow from the 4.5% surge seen in April.

Wales saw the highest annual rate of price growth - 27.5%, well ahead of the 11% recorded for England, though areas such as the north-east have seen prices leap as much as 28% over the year.

The London market is continuing to recover, with prices 12.2% higher than a year ago.

 

13th July 2004

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