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Insight & Opinion

Land Registry: House prices drop 0.2% in October

Author: Gemma





The latest figures from Land Registry have revealed that house prices in England and Wales fell by 0.2 per cent in October when compared to the month previously.

According to the government department, the average house price for property in the region now stands at £165,515, marking an annual price increase of 3.1 per cent.

The UK capital saw the largest movement in property values, with an increase in prices of 8.7 per cent in the last 12 months. Wales however saw the greatest monthly rise in property values, improving by 2.4 per cent.

When it comes to price falls, the north east saw both the greatest monthly and greatest annual drop in values. When compared to September, values moved by -3.1 per cent, while on an annual basis values decreased by 0.8 per cent.

Falling values were also seen in the north west on an annual basis, with prices dropping by 0.7 per cent, while in Yorkshire & The Humber there was a decrease of 0.5 per cent.

Most surprisingly, the south east has seen a monthly reduction in values, with this falling by 0.3 per cent.

These decreasing values, especially in areas close to the capital, provide an excellent opportunity for landlords to invest in residential property.

With lower purchase prices, landlords can see increased value in rental income and will likely benefit in years to come when house values climb once more.

When it comes to the south east, people looking to relocate to the area are more likely to move into rental property, as housing prices are still too high for many first-time investors. This is especially true for those with jobs in London, as the south east proves to be a more financially suitable option for living and provides easy commuting links.

Therefore, landlords will benefit greatly from young professionals moving towards the southern areas of England for employment opportunities.

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