New data show that most of England, Wales and Scotland have seen prices jump over the past year, with the West Midlands rising 15 per cent.

Property prices in the West Midlands rose by more than 15 per cent to £186,633 over the 12 months to November 2011, making it the region with the most significant increase overall, data from SmartNewHomes’ house price index has shown.

The average asking price of a new home in November in England, Wales and Scotland was £224,298, up 0.8 per cent from the figure in October.

This is the second consecutive monthly increase recorded on the index, with prices now up 1.3 per cent over the past three months. The data show, however, that annual growth has fallen back from a peak of five per cent in October to a more “sustainable” 1.7 per cent.

The monthly rise in November reflects prices rises that were recorded across eight of the 11 regions England, Wales and Scotland as defined by SmartNewHomes.
After the West Midlands, the largest growth was recorded by Yorkshire and the Humber, which saw prices rise by 6.8 per cent to £191,254. Prices in three regions - the north-west, north-east and Scotland - all rose by around five per cent.

Average prices in the East Midlands grew by 2.3 per cent, while Wales and the south-east both recorded modest growth of 1.5 per cent and 1.4 per cent respectively.

The three regions that saw falls include: Greater London, which dropped 11.1 per cent to £300,418; East Anglia, which slipped 6.3 per cent to £213,798; and the south-west, which fell by 4.2 per cent.

Steve Lees, director of SmartNewHomes, said: “Demand, coupled with a more streamlined market, will underpin price growth in the first half of 2012 and until the new National Planning Policy Framework comes into effect in the autumn and the number of new homes coming to market begins to increase.

“However, the recent revising downwards of gross mortgage lending figures in 2012 by the Council of Mortgage Lenders threatens to waylay those buyers keen to make a move into the market as well as undermining the efforts of housebuilders and the government, who continue to work closely with the banks and building societies to introduce a range of affordable mortgage products.”

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