Land Registry data compounds first time buyer worries

29-Jun-2007

New figures from the Land Registry have shown that house prices rose by 0.7 per cent in May and 8.9 per cent over the year as a whole, compounding first time buyer worries following the publication of figures from Nationwide earlier this week.

While the two studies differ slightly in their exact assessment of the market, both agree that prices have continued to rise in both May and June.

The Land Registry data showed that the average house price in England and Wales is £180,594. Affordability problems are further exacerbated in London, where the average currently stands at £335,658.

However, issues exist all over the country, the report noted.

"No county or unitary authority experienced negative annual price change this month," the government department's study advised.

"Rising affordability pressures will make it ever more difficult for first time buyers to get into the housing market and for existing house owners to trade up. In addition, the very real possibility that interest rates could reach six per cent before the end of 2007 is likely to act as a significant deterrent to many potential house buyers," commented analytical firm Global Insight.

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