House prices rise in London

Asking prices for Properties in London have increased, according to new findings. A study by Rightmove revealed that late Easter and May bank holidays, meant that some homeowners didn’t put their homes on the market, resulting in a shortage of housing supply, at a time when more people are hoping to buy homes.

The Estate Agents reported that despite email enquiries rising by 20 per cent in 2014, compared to last year, there were not enough properties to meet demand.

According to Rightmove, the annual rate of increase is now 8.9 per cent, the highest year-on-year rise since October 2007, when it was 10.4 per cent.

The findings also showed that new sellers’ asking prices went up by an average of 3.6 per cent.

This represents the largest ever rise recorded at this time of year and another new all-time high.

The average asking price in London is up by nearly £80,000 so far in 2014 – or £4,500 a week.

Commenting on the findings, Miles Shipside, Rightmove director and housing market analyst, said: "For a bubble to burst you need a sustained drop in demand, yet agents in the capital report a consistently high level of would-be buyers in markets that are not yet out of reach for Londoners. 

"London prices traditionally pick up earlier than the rest of the country, and whilst it appears to be slowly dragging other regions along in its wake, the difference is still very marked, particularly when the percentage increases are turned into hard cash comparisons."

Separate research published by independent Estate Agent network haart, that in the UK as a whole, prices are up 9.4 per cent year on year and 2.1 per cent month on month.

So far, all of the indications are that prices are rising, particularly in London. This lies in stark contrast to the rental market, where rents are rising - below the price of inflation.

A recent study by LSL Property Services revealed that rents have gone up by only £5, or 0.6 per cent, in the last 12 months - less than 1.6 per cent annual rate of inflation as measured by the consumer prices index (CPI). 

Published 22nd May, 2014

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