House prices in the West Midlands rise
House prices in the West Midlands have risen for the first time in a year in the latest sign that life is returning to the region’s economy.
Latest Land Registry figures show the average price paid for a home in the region rose 0.8 per cent in April – the biggest monthly jump since February last year.
The figures come as research from the Chartered Institute of Purchasing & Supply (Cips) showed manufacturing activity also reached its highest level for a year.
RICS spokesman Richard Franklin said the rise in property prices – no matter how slight – could mark the start of a brighter outlook for the region’s house market.
Mr Franklin, of Franklin Property Consultancy, said: “As Land Registry data is based on actual transactions rather than mortgage applications, this is an important barometer of the current market.
“Whilst it is dangerous to consider the data in isolation, I believe this could mark the start of a slowdown in price drops across in the region.
“This data is consistent with the recent trend in the RICS sales to stock ratio which has now risen for four consecutive months which has historically been a good lead indicator of turning points in house price inflation.”
The annual rate at which property prices in the West Midlands are declining has now dropped to 15 per cent after a 12-month slide. However, the number of transactions in the West Midlands remained low. Latest figures show a total of 7,931 deals were agreed on new homes in the three months to March, compared to 17,813 in the same period last year, when the average property in the region was valued above £150,000.
The average cost of a home in the West Midlands is now £129,382 – a level last seen in June 2004.
