The average property value in England and Wales increased by 2.5% in January, the biggest growth for 14 years.

Summary:

• January saw the strongest monthly price growth in the property market since 2002
• Prices in England and Wales increased by 7.1% in 2015, adding almost £5,000 in value to each property
• The number of properties sold for over £1 million outside of London has increased by 14%

Property prices in England and Wales increased by 2.5% in January, the biggest monthly percentage recorded since June 2002.

The 2.5% increase has seen the average property value grow by £4,732, compared with December, pushing the average house price across England and Wales to £191,812, the latest Land Registry index shows. Prices are now 7.1% higher than a year ago.

Stephen Smith, Director at Legal & General Housing Partnerships, said: “Unsurprisingly, these figures highlight a significant annual house price increase across the UK. Whilst price inflation may vary, one factor that is common across the UK is the need for improved housing supply. The market is weighted heavily towards the demand side.”

The house price index also shows that the number of property transactions has decreased over the last year. From August 2014 to November 2014 there was an average of 81,656 sales per month. In the same months a year later the figure was 78,652.

A continued shortage of housing stock could be a factor in the decreased levels of property transactions, with 15 buyers chasing every property on the market.

The number of properties sold in England and Wales for over £1 million in November 2015 increased by 14% to 1,091 from 953 in November 2014. The number of properties sold in London for over £1 million in November 2015 increased by 9% to 657 from 601 in November 2014.

Source: Select Property