House prices return to 2007 levels - Acadametrics

The average value of a property in England and Wales increased by 1.9% in February to levels recorded three years ago in April 2007.

According to Acadametrics, which combines figures from the main house price indices, the average price of a home is now at £222,008.

February's increase of 1.9% is the tenth in succession and a further step up January's 1.4% rise. It means annual property price inflation is currently standing at 9.7%.

However, the figures contradict those recorded by Nationwide and Halifax, which respectively reported a 1% and 1.5% fall in average prices for the month.

The discrepancy is explained by the fact Acadametrics' calculations weight information from a range of mortgage lenders and the Communities and Government figures according to their past reliability in predicting Land Registry figures; the definitive numbers for the housing market.

Dr Peter Williams, chairman of Acadametrics, says: "Given that the two lender mortgage approval based indices for February showed falls of -1.0% and -1.5%, we have a clear tension as to what is really happening in the market.

"The AcadHPI for the latest month is forecast on a mix of data but, as prior months show, when more data becomes available is impressively stable and reliable. In seeking answers to the current divergence we would stress AcadHPI is a completion based measure, it covers England and Wales rather than the UK and it includes all properties sold including cash purchases and homes sold for over £1m. All of these will be factors in explaining the difference."