Sales of properties worth more than £1 million increased by 35% last year, according to figures just released by the Land Registry. The rise was driven by demand in London and the South East, where there was a 33% increase in the number of million pound plus properties in the year to September 2006, as reported by the Times Online in an article by Rebecca O'Connor published on their website.
The findings were included in the Land Registry's monthly house price index, which recorded an annual UK house price rise of 6.8% to £172,006 in November, up by 0.6% on the previous month. But the data showed wide regional variations in the housing market.
In London, Hammersmith and Fulham, Kensington and Chelsea and the City of Westminster all recorded growth around 14%. Annual growth in London was up by the highest percentage in November, at 7.8%, reflecting stronger demand in the Capital, although the rate of increase was slightly down on October figures, by 0.6 percentage points. Prices in the Yorkshire & Humber region were also down on October rises, by 1.5 percentage points.
Yearly increases were lowest in the East Midlands, where the average cost went up by 4.7%, but growth in some towns and cities was resolute. Brighton & Hove, Middlesborough and Neath were among those towns outside the capital to experience double-digit growth.
The Land Registry said this month's figures denoted a "calmer" housing market, although the increase is still roughly double 2005 monthly growth rates, suggesting that that the impact of August's base rate rise may have begun to filter through to buyer activity. The November House Price Index stood at 209.1.
The annual growth figure is less than the Halifax and Nationwide indices, which put house price growth at around 10% for the year. Land Registry data is based upon the sale price at the point of completion, unlike Halifax and Nationwide, which use the price at the point of exchange. There is usually a time lag of two or three months befor the figures catch up.
