UK asking prices see strong rise in last month, latest index shows

Taylor Scott International News

Confidence has returned to the UK property market after the election and is so high that asking prices in London increased by more than £10,000 in the last month. The latest Home.co.uk index from shows that average prices rose in all English regions and Wales for a fourth consecutive month and momentum is on the rise even in the formerly stagnant North East property market with a 13% improvement in the average marketing time. The report also points out that the supply of property for sale remains behind buyer demand in all regions except Greater London, where marketing times have increased considerably over the last year. Asking prices increased 2% over the last month in the London region and by 1.1% overall in England and Wales during the last month. The growth takes the average annual home price appreciation for England and Wales to 5.9% and further price rises are predicted this year. The Prime central London market may have been freed from the political uncertainty regarding a mansion tax and non-dom legislation but has yet to regain the momentum lost over the last 18 months. Pricing remains stagnant and flats in locations such as Belgravia are typically spending around 50% more time on the market than they were in June 2014. Time on market data for the rest of the UK shows that the northern regional markets, Scotland and Wales have all increased their momentum over the last 12 months. However, the southern regions such as the South East, East of England and South West are indicating slight increases in marketing times as higher prices have lessened demand. ‘Whilst 2015 is looking like a much better year for the northern regions, Scotland and Wales, hopes that the market in London and surrounding southern regions might slow to a more sustainable pace have been swept aside by further relentless price rises,’ said Doug Shephard, Home.co.uk director. ‘This will create significant cause for concern at the Bank of England. For the time being the key economic drivers of ultra low interest rates and low supply of property for sale remain. Buy-to-let landlords and first-time buyers alike are able to borrow very large sums to purchase property at very low rates of interest. And this situation looks set to drive prices higher in the near term,’ he added. Continue reading →

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