House prices break new record but growth slows

House prices in England and Wales jumped £16,446 in the last year to hit a new record high of £290,640.

This is a 6% increase on November last year, according to new figures from Reeds Rains and Your Move estate agents, published today.

But the monthly rate of house price growth fell to 0.6% in November, slower than the 0.9% monthly uplift seen in October.

The South East overtook East Anglia as region with the fastest growth in house prices, while London dropped to fourth.

Home sales fell 15% in November, with completed sales for the year still 3.4% behind this point in 2014.

The stamp duty surcharge may cause a late winter surge, as second home buyers and landlords hurry to beat the 1 April deadline.

Adrian Gill, director of Reeds Rains and Your Move estate agents, said house prices have sprinted to a new record even with a monthly stumble, rising £45 a day.

“Prices have been powered by the South East, which has now overtaken East Anglia as the fastest growing region in England and Wales.

“House prices in the South East have risen by an average of 7.1% this month, with values increasing in every local authority in the area.

“It appears that the double digit price rises first seen in the prime London market are now rippling out even further to London’s commuter towns, with house prices in Reading rising by 18.3% and Luton increasing 17.3%.”

Home sales fell 15% in November compared to October.

Gill said: “The housing market will need a Christmas boost to sales to beat last year’s figures. And the Chancellor’s changes could be the gift required.”