House prices still stagnant, government reports

House prices remained flat in November but fell 0.3% over the year, according to new government figures.

Prices were also down 0.2% over the quarter to November.

Northern Ireland saw the biggest fall in prices, down 11.7% compared to 2010, according to the Department for Communities and Local Government (DCLG) index, which lags two months behind other house price indices.

The average house price in England meanwhile fell 0.1%, Scotland 0.8% and Wales 1.6%, bringing the average UK house price to £205,796.

The average price of properties bought by former owner occupiers also fell 0.7% over the year to November 2011, compared to the average house price for first time buyers which increased by 0.7% over the same period.

Michael Brown, director of London-based estate agents, The Property Lounge, said: ‘Across the country as a whole, prices remained largely stagnant. Only in London has the market been accelerating towards the tape’.

‘And 2012 looks likely to repeat that pattern,’ he said. ‘With so much pent up demand, we are frequently asked for 20 or even 30 viewings when we list a new property. And we currently have a house for sale at nearly 40% more than we sold it for a year ago’.