Property prices in London are now considerably higher than the rest of the UK, according to the latest Land Registry House Price Index for September 2015 released on Wednesday.
The average price of property in London has reached GBP499,997, in sharp comparison with the average for England and Wales of GBP186,553.
Land Registry data for London shows a monthly increase of 1.8% in September and the annual change of 9.6% shows that it is far more expensive to live in the capital, compared with the overall average in England and Wales of GBP186,553. The North East of England experienced the only annual price decrease of 0.3%.
The BBC reported that the Centre for Economics and Business Research has stated that a lack of properties for sale is pushing up prices.
The media company also quoted Rob Weaver, director at Property Partner, as saying: “That average prices in the capital are just a whisker off half a million pounds reinforces how buying in the capital has become a pipe dream for most first-time buyers.”
According to the Land Registry, which is responsible for registering the ownership of land and property in England and Wales, the number of property transactions has decreased over the last year. From April 2014 to July 2014 there was an average of 78,330 sales per month, while in the same period of 2015 there were 71,766 sales per month recorded.
Price index volatility is said to be greater in areas where recorded sales volumes are low, with index volatility resulting in erratic and high changes in reported price. Some of the areas that typically have very low transaction volumes include the City of London, Rutland, Isle of Anglesey, Merthyr Tydfil, Blaenau Gwent, Ceredigion and Torfaen.
It is the Land Registry’s duty to keep and maintain the Land Register, where more than 24 million titles are documented. Landowners or individuals or organisations who own interests in land in the UK are required to apply to the Land Registry to: register unregistered land; register a new owner of a registered property following a sale; and register an interest affecting registered land, such as a mortgage, a lease or a right of way.