UK continues to see average property prices grow, but biggest rise still in London

Taylor Scott International News

Average UK property price growth remains strong across the country, up 8.9% annually to £206,578, according to the latest monthly index. House price growth in London continues to storm ahead, up 23.6% on August 2013 and 2.4% on last month, the data from independent estate agent haart also shows. The number of new buyer registrations has fallen by 5.5% annually across the UK but there are 9.5 buyers on average chasing every property. Overall the report says that the UK market remains buoyant with sales transactions also up 8.9% on last year although in London the supply of homes is up by much more, with the city seeing growth of 26.6% annually and 15.7 buyers registering for every new property for sale. ‘The property market is currently recalibrating. Our data shows an easing of demand as new buyer registrations across the UK decrease 5.5% annually, in contrast to the uplift in homeowners looking to sell which is up 4.1%,’ said Paul Smith, chief executive officer of haart which has a network of over 200 branches. ‘Despite this influx of stock the market remains competitive with an average 9.5 buyers registering interest in every new home that comes to market, which is the driver behind property price growth. This gradual return to normality should now dispel fears about property bubbles which we have always dismissed as hype,’ he explained. ‘People now see the reality that interest rates will rise early next year but are keen to take advantage of current market conditions. Our message to people thinking about selling is that autumn is crunch time,’ he pointed out. ‘Good mortgage deals are still plentiful but won’t last forever. Buyers do have increased choice right now but the strong competition that remains in the market will ensure that those selling now have the best chance at the best price,’ he added. The index also shows that the average first time buyer property price dipped marginally by 1.1% on the month to £153,967 but increased 6.7% annually. First time-buyers now make up 45.9% of all mortgages written which is up from 42.2% in August last year. The average mortgage extended to a first time buyer is now £120,933 which represents an increase of 9.5% on last year and the average loan to value is now 80.2%, which is up from 78.6% last year. The average property price in London is now £494,026, an increase of 23.6% annually and 2.4% on the month. The firm says that the reason behind this growth is the high ratio of demand to the supply of homes with an average 15.7 prospective buyers registering for every available property. The west London postcode is the most expensive area in which to buy with the average price now at £551,711, an increase of 13.3% annually. The east of the city remains the cheapest postcode with the average property price currently at £421,166. The number of properties for sale in London is… Continue reading →

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