London housing market hits high demand, could renting be the answer?

The housing market throughout the UK experienced a positive growth in June, with house prices increasing to the highest rate seen since before the recession hit in 2007. The most positive increases have been seen throughout London with properties staying on the market for an average of 4.1 weeks.

On average a home within the UK will sell within 8.6 weeks, meaning that London properties are staying on the market for less than half the average amount of time. The figures have come from Hometrack, a housing industry analyst, which has also shown that the rate of sale throughout London is much quicker than throughout the Midlands and in the North. Homes within these regions are taking an average of ten weeks to sell.

The rate at which homes are selling throughout London and the prices they are selling for means that renting is becoming a more popular option for those wishing to live in the capital. Although the rental market is just as competitive as the buying market when it comes to London housing, there is a higher chance of successfully finding a suitable property by moving quickly. Whilst buying a property will require more paperwork and funding, handing over a deposit and signing a lease at the earliest possible opportunity can ensure that the right property is rented rather than missed.

The drive behind the increase in buying prices and how quickly houses are selling in London comes as a result of the shortage of suitable properties. Higher demand throughout the city is seeing people pay more when it comes to purchasing a property rather than renting one.

Richard Donnell, director of research at Hometrack, said: "First is an increase in the number of first-time buyers, who increase demand but add nothing to available supply. Second, existing occupiers are looking to identify property they want to buy before putting their homes on the market, which boosts demand ahead of any growth in supply."

 

Published 1st July, 2013

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