House prices don’t add up

LATEST figures that suggest a dramatic decrease in local house prices are distorted, says major estate agent Ryder & Dutton.

Officially, average house prices fell by 6.3 per cent in 2012 compared with the previous year — making the borough the fifth-worst performer in the country.

But the company believes the Land Registry figures have been distorted by forced sales of repossessions and auction sales - and don’t represent the real market for family homes.

A spokeswoman said: “While the various indices show prices up and down from month to month, we think prices have been more or less the same for the last two years.

“We expect prices to remain the same, or rise very marginally, in 2013. Locally we have seen a positive start to 2013.”

The average price of a house is £79,615, according to the Land Registry’s house price index — among the lowest in the country.

The top 10 biggest fallers are all from the North and the biggest riser is from Greater London — up 8.4 per cent, with the average price £371,223.

The number of homes sold in England and Wales for over £1 million in October 2012 increased by 14 per cent, to 623.

Separate research by Belvoir Homes has shown a cultural shift towards renting rather than buying — a trend that looks set to continue.