Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

Wednesday, May 26, 1999 Published at 05:53 GMT 06:53 UK


Business: The Economy

House prices rise but sales fall

London is still the priciest place to buy a house


Russell Hayes: "Low interest rates are pushing up house prices"
Average house prices in England and Wales are rising much faster than inflation - but they were static in parts of northern England.

Official figures from the Land Registry show that the average price of property sold in the first three months of this year was 6.6% higher than a year earlier.


[ image:  ]

However the number of houses sold in the first quarter fell sharply by 19.4% - reflecting the typical slowdown in house buying in the months immediately after the New Year.

The Land Registry collects details of all purchases of houses and flats in England and Wales.

This makes it the most authoritative guide to what is happening in the property market.

Between January and March the average price of a property was £85,000.

Regional differences

But this average masks large regional differences.

House prices in London were up nearly 9% compared with no increase at all in Yorkshire and Humberside.

The rise in house prices is not particularly high by historic standards - but it comes when the economy has ground to a halt and when general prices are rising at only a third of that rate.

This will worry the Bank of England because it shows it has not been able to contain house prices even though it has a firm grip on inflation.

If house prices continue to rise sharply - another house price boom and bust cycle is possible.





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Economy Contents


Relevant Stories

26 May 99 | The Economy
UK house prices 'set to boom'

30 Apr 99 | The Economy
House prices up - just

07 Apr 99 | The Economy
Property market perks up

31 Mar 99 | The Economy
Housing market springs back

22 Mar 99 | The Economy
Price pressure on UK housing market





Internet Links


HM Land Registry


The BBC is not responsible for the content of external internet sites.




In this section

Inquiry into energy provider loyalty

Brown considers IMF job

Chinese imports boost US trade gap

No longer Liffe as we know it

The growing threat of internet fraud

House passes US budget

Online share dealing triples

Rate fears as sales soar

Brown's bulging war-chest

Oil reaches nine-year high

UK unemployment falls again

Trade talks deadlocked

US inflation still subdued

Insolvent firms to get breathing space

Bank considered bigger rate rise

UK pay rising 'too fast'

Utilities face tough regulation

CBI's new chief named

US stocks hit highs after rate rise

US Fed raises rates

UK inflation creeps up

Row over the national shopping basket

Military airspace to be cut

TUC warns against following US

World growth accelerates

Union merger put in doubt

Japan's tentative economic recovery

EU fraud costs millions

CBI choice 'could wreck industrial relations'

WTO hails China deal

US business eyes Chinese market

Red tape task force

Websites and widgets

Guru predicts web surge

Malaysia's economy: The Sinatra Principle

Shell secures Iranian oil deal

Irish boom draws the Welsh

China deal to boost economy

US dream scenario continues

Japan's billion dollar spending spree