Transactions on property grew four per cent in England and Wales between April 2018 and April 2019, according to a recent survey by Lending Solutions Limited (LSL) Property Services and Acadata.
In April 2019, there were an estimated 64,000 transactions, which is four per cent higher than the same time the previous year, indicating a recovery in activity.
Despite the increase in transactions, declines in average house prices were registered across five regions of England and Wales. Overall, an average house in England and Wales saw price gains of just 0.2 per cent annually in April, taking the average total value of a home to £303,122.
This comes after Halifax reported that average house prices grew as much as five per cent annually in April across the UK as a whole.
Greater London is home to some of the most expensive properties on average, according to the recent House Price Index, but prices actually fell in April by 1.1 per cent on an annual basis, to £615,735. In contrast, the average Welsh home was worth £187,754 that month, having grown one per cent annually.
The West Midlands region of England showed the greatest price gains of as much as 1.9 per cent annually in April, making the average home in the region worth £229,685.
The cheapest region for average house prices was recorded as the North East region of England, where prices fell 1.2 per cent annually, making the average home worth £163,324 in April.
Positives for the housing market
Despite the weak growth in house prices, LSL Property Services and Acadata added that there were a number of positive fundamentals in the UK housing market.
They commented: “First-time buyer (FTB) activity is strong, supported by the bank of Mum and Dad alongside Help-to-Buy, and in the context of a contracting Buy-to-let market…changes have allowed more FTBs to enter the market and to negotiate lower prices in the absence of stronger competition.”
“It is clear from a number of market commentaries that sellers in some regions, notably London, are dropping prices in order to secure early sales,” they concluded.
This echoes news that sectors of the Prime London property market were at their cheapest valuations since 2010, according to a Prime Central Index by Property Vision.