Price rises 'making homeownership unaffordable'

The price of buying a property is becoming increasingly prohibitive to many Londoners, according to new findings.

A recent report by Move with Us revealed that housing costs are continuing to rise - particularly in capital.

The data showed that average residential asking prices in six regions of the UK reached record highs in the first quarter of the year and the number of new listings increased by 114 per cent.

In Greater London, property prices reached a five-year high in March at £438,118, which represents a growth of £69,761 in one year.

This is a pattern seen across the UK. The average asking price reached £255,115 in East Anglia, while the East Midlands recorded its highest ever asking price average at £185,250.

In the south west, consumers pay on average £268,880, thanks to a price rise of 0.4 per cent.  The south east saw a 3.01 per cent quarterly rise taking asking housing costs to their highest ever.

Move with Us revealed that prices also dipped around Christmas in the north west but price rises in February and March meant they are now the highest they have been since July 2010, with the average price at £174,985.

This has led to rising confidence among sellers - although it has meant that it is harder for people to afford mortgages.

In the West Midlands, the average asking price dipped in the run up to Christmas, it then grew each month in the first quarter of 2014 to £169,676.

Commenting on the findings, Robin King, director of Move with Us, said that rising prices may make homeownership seem out of reach for many people.

He said: "It’s no longer just London which is experiencing rises in the average asking price, it’s happening in many regions in Britain."

Housing shortages have also contributed to rising prices.

Published 13th May, 2014

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