"However, the national average masks significant regional differences, with prices falling in parts of the country and London continuing to outperform the rest"
- Mark Harris, chief executive of mortgage broker SPF Private Clients
House prices across England and Wales rose at the fastest pace for more than two years in 2012, mostly driven by property values in London, despite overall weak economic performance. Prices in England and Wales rose by an average of 1.7%, while London prices surged 8.4% and prices the north-west fell by 3.5%. The Land Registry also said the average price of a property rose by 0.8% in December from a month ago, bringing the average price to £162,080. However, the data are based on fewer and fewer transactions across the country, as sales per month across England and Wales fell to just 57,661 in the fourth quarter of 2012, compared to 62,073 in the same quarter a year earlier.
"However, the national average masks significant regional differences, with prices falling in parts of the country and London continuing to outperform the rest," said Mark Harris, chief executive of mortgage broker SPF Private Clients. "We expect this situation to continue this year."
"As has been the case over the last three years, the prospects for the London market will have an important bearing on overall house price growth in 2013. London continued to provide important support to headline trends in 2012," said Richard Donnell, director of research at Hometrack.
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