Welsh House Prices Rise 6.55% in Two Months

June so far has seen the highest number of sales in three months, according to a report today by property analysts Hometrack.

Chief economist howard archer with IHS Global Insight said that given this activity, “we expect house prices will end up declining by some 10pc overall by the middle of next year.” This figure is from the figure seen in 2010. But many people who bought in 2007 and 08, when house prices peaked will see more dramatic declines, potentially pushing thousands into negative equity.

[PDF] The Regeneration Framework - Corby

The Northamptonshire town which was subjected to forced housing  growth under the previous Labour government has the highest proportion of homeowners who have been issued with a possession order for their home over the last 12 months, according to the research.

It was closely followed by London Borough of Barking and Dagenham and London Borough of Newham; Knowsley in Merseyside and Thurrock, Essex.

East London topped the list thanks to developments in Canary Wharf and Docklands, parts of Scotland, the South-West and Liverpool also made the top ten.

Second in the economic growth list was Inverness & Nairn and Moray in Scotland, together with Badenoch & Strathspey. Here the average price rose by 197 per cent, from £58,092 in 1998 to £172,541 in 2008. Since then prices have fallen by 13 per cent.

Edinburgh, Glasgow and North Lanarkshire have also proved property winners.

In the South-West prices in Cornwall and the Isles of Scilly, together with Bournemouth and Poole, also did well.

Following a peace agreement in Northern Ireland, Belfast enjoyed massive investment. Over the ten years to 2008, the average house price surged 344 per cent to £228,647.

However, the city has seen a strong reverse in the past three years, with the average  price down 46 per cent, mirroring the Republic of Ireland. Despite this, the average remains some £72,000 higher than in 1998.

Over the past three years, average house prices have fallen by around 24 per cent in areas with the largest decline in economic activity. They include Hull, Blackpool, Walsall and Wolverhampton.

Despite the rises, tenant arrears fell in May 2011, with 11.5% of all rent in England and Wales unpaid or late by the end of the month, compared to 11.8% by the end of April. But this figure is well above the 10.6% average of 2010, and takes the total unpaid rent to £277m.

The high street is under pressure from the effects of both the government’s austerity measures and the end of its attempts to stimulate economic growth following the credit crisis. The surge in basic living costs caused by inflation is at a two-year high, just as wage growth has stagnated.

Rental growth over the next five years will average 0.8% In real terms, this growth will cause rental values to fall if inflation rates of more than 4% are maintained. For example, average rents fell by more than 5% in the year to June 2011.

The number of homes coming on to the market has surged but the number that are selling has fallen, according to the Royal Institution of Chartered Surveyors.

Between March and May, the average estate agency managed to sell only 14.7 properties, the equivalent of just over one per week.

• The total volume of new construction orders fell by 18 per cent compared with the same period in 2010

• All sectors showed a negative growth in new orders in the first quarter compared with the fourth quarter

Mortgage approvals by high street banks fell 18% in April compared to the year before, according to new figures from the British Bankers Association (BBA). April 2011 figures for the main high street banks

Total mortgage approvals in the month of 29,355 were just above half the average monthly level of 57,644 seen since 1997.

The average value of loans dropped 1.1% lower than the previous April to £145,100.

Despite the fall in total loans being given out, the BBA said net lending (which includes money paid back over the month) grew by £1.3bn compared to the year before.

BBA statistics director, David Dooks said individuals and businesses were saving more, paying off debt and borrowing less.

"Uncertainty about the economy has entrenched a 'wait and see' attitude," he said.

The aggregate of private (mortgage and credit) borrowing has now turned negative.