SmartNewHomes house price index data has revealed the property prices in the West Midlands increased over the course of the last twelve months.  The increase totaled more than 15% for the year, which is quite an anomaly versus most other areas within the UK.  Overall, the region posted the highest overall increase in property value for the year.  Comparatively speaking, the Capital City only experienced a 10% increase in property value over the course of the year.

The results of the last quarter of the year have surprised many associated with the housing market.  England, Wales and Scotland all posted increases in the asking price of new homes during the month of October.  The increase was less than 1%, but was a welcome sight based on the time of year and the expected continued downturn in the value of property.  At the beginning of the month of November, the average asking price had increased to more than 224,000 pounds.

Steve Lees, director of SmartNewHomes, commented on the recent state of property prices, saying: “Demand, coupled with a more streamlined market, will underpin price growth in the first half of 2012 and until the new National Planning Policy Framework comes into effect in the autumn and the number of new homes coming to market begins to increase.

“However, the recent revising downwards of gross mortgage lending figures in 2012 by the Council of Mortgage Lenders threatens to waylay those buyers keen to make a move into the market as well as undermining the efforts of house builders and the government, who continue to work closely with the banks and building societies to introduce a range of affordable mortgage products.”