18 Surrey Offices

The May data from Land Registry's flagship House Price Index shows an annual price decrease of -2.2 per cent which takes the average property value in England and Wales to £161,823.

The monthly change from April to May is a decrease in property values of -0.4 per cent. The only region in England and Wales to experience an increase in its average property value over the last 12 months is London with a movement of 2.9 per cent. 

The most up-to-date figures available show that during March 2011, the number of completed house sales in England and Wales decreased by -13 per cent to 44,803 from 51,399 in March 2010

"A fascinating scenario, as normally a shortage of supply fuels demand" says Andrew Dewar our Joint Senior Partner. “There are few commodities which, when in short supply, don’t increase in value. But these statistics reflect the public’s nervousness, borne out of concern regarding the current economic climate and job security.”

"...we currently have some of the
cheapest mortgage rates of all time..."

However as with all things, this picture must be put into perspective. London has fared better due to the huge 'international' pressure from buyers and some of this has had a ripple effect out to Surrey and the Home Counties. That said, there is no local evidence to support prices have risen by 2.9%.  Equally there is no evidence that prices have fallen by any margin in the last few months. 

But what we have observed is that 'over-priced' stock (of which there is a lot on the market) has had to be reduced in order to attract buyers.  But there are buyers out there looking.  The last two months have been our busiest for 2 years with record viewing levels and excellent sales. It’s a perfectly good time to move as there is 'price stability' and a less frantic pace, giving everyone a little more time to work with. And we should not lose sight of the fact that we currently have some of the cheapest mortgage rates of all time here in the UK, which is helping 'affordability'.

What does exist is a huge pent up need/desire to move and this will come to the fore in time.  A great number of people have been stalling their moves over the last 3 years waiting to see what is going to happen. 

No one really knows quite when things will change, but change they will.  I believe when we look back in 5 years from now, today’s prices will seem low. Britain is a small island and here in the southeast, there is precious little land left to build upon.  Add to this a growing population, international movements of people and businesses, plus increasing building costs and we have a recipe for rising prices for the future. Long term, 'safe as houses' is just that!”

Andrew Dewar 
Joint Senior Partner

4th July 2011

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