House prices back to 2006 levels

New figures from the Land Registry show house prices in England and Wales back to summer 2006 levels, having risen by 0.1% in June, compared with May.

Last month, the typical home sported an annual gain of 8.4%, taking the average house price to £166,072.

All ten regions of England and Wales experienced annual rises, with London leading the way at 12.2% and the value the average home in the Capital returning to the same level as three years ago.

The North East experienced the smallest annual rise, with a movement of 0.7%, and semi-detached homes across across the regions gained slightly more than other property types, showing a 9.6% annual rise.

The data also reveal that sales volumes averaged 44,114 per month from January to April 2010, a marked improvement on the 32,041 per month recorded in the same period of 2009.

Looking forward, analysts are broadly in agreement that UK house prices will remain flat for the remainder of 2010, although modest price falls could occur if instructions for sale continue to outstrip new buyer demand.

While Land Registry figures appear almost a month later than those of other commentators they are generally regarded as the most reliable because they are based on completed sales, rather than mortgage approvals.