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Housing Monitor
MAY 2012
Monitor Focus Business People Place Housing
GM house prices continue to fall
The average property in GM cost £105,397 in March 2012, virtually the same as in February, but more significantly, the average cost of a property in GM is now 2.1% (£2,244) cheaper than it was in March 2011. This means that year-on-year on prices in GM have now declined for 16 consecutive months.
House prices in England & Wales have declined for 15 consecutive months on an annual basis. The average cost of a property at a national level currently stands at £160,372 – 0.6% (£900) cheaper than March 2011.
This trend has been bucked by Manchester, where prices increased over a 12 month period by 2.5% (+2,292). All other GM districts saw annual declines, with the largest falls seen in Bury (5.8%), Wigan (4.9%) and Tameside (4.6%).
The latest house sales data for January show that total sales in GM fell markedly to around 1,600. Although January is traditionally one of the quieter months for the housing market, the fact remains that there is little movement in the market.
With the Government having ended its stamp duty holiday for properties worth less than £250,000, sales in February and March may have been boosted as first-time buyers tried to beat the expiry date. Approximately four in ten first-time buyers are estimated to have benefited from the stamp duty concession during the two years it was in place. It remains to be seen how much of an impact the end of the stamp duty holiday for first-time buyers will have on sales from April onwards.
Even with year-on-ear declines in house prices, the property ladder remains out of reach for many people as household incomes also stagnant, mortgage requirements become tighter and a lack of new build housing means that prices will continue to remain too high.
The lack of housing supply is a real problem and a recent report by MPs on the Commons Communities and Local Government Select Committee found that more than 230,000 households were forming each year in England, yet in 2011 only 110,000 new homes were built. The report argues that pension funds and other investment funds should be encouraged to invest in building new homes.
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- House prices (4458kb)
- Housing and council tax benefits (31kb)
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All data contained in the Manchester Monitor, and all Monitor-related reports, has been compiled by New Economy from a range of sources and is published for general information purposes only. While every effort has been made to ensure the accuracy of the data and other material contained in this report, the Commission for the New Economy does not accept any liability (whether in contract, tort or otherwise) to any person for any loss or damage suffered as a result of any errors or omissions. The information, opinions and forecasts set out in the report should not be relied upon to replace professional advice on specific matters, and no responsibility for loss occasioned to any person acting, or refraining from acting, as a result of any material in this publication can be accepted by the Commission for the New Economy.
