Housing market “delicately poised”
Both the number of homes sold in England and Wales and the prices achieved fell during May, according to Acadametrics.
The number of properties changing hands declined by an estimated 18% from April, while the value of the average home dipped by 0.2%.
On an annual basis, prices in England and Wales were 9.7% higher in May, with the value of the typical home coming in at £220,352, only slightly down on April’s figure but well below the February 2008 peak of £231,828.
Price reductions were evident in all regions last month, ranging from a 2% fall in the East Midlands to a 0.1% fall in Greater London.
Acadametrics chairman, Dr Peter Williams, comments: “The market conditions in May were obviously influenced by the suspension of Home Information Packs … and by the Government announcements on increased Capital Gains Tax on property investments.”
He adds: “Together, these propelled more homes onto the market and thus adjusted the demand/supply balance.”
According to Dr Williams, the market is “delicately poised and easily buffeted in one direction or another by slight changes in circumstances”.
Acadametrics claims to be the only UK house price index to provide a “true measure of house price inflation”, because its calculations are based upon every residential property transaction in England and Wales.