Property prices forcing consumers into rental accommodation

Property price rises are forcing more and more people into rental accommodation, according to new findings.

Research published by Hometrack revealed that the average property price rose by 0.7 per cent in January.

Its report showed that prices went up in more than half of the regions across the UK for the first time in a decade.

In England and Wales, prices rose for 51 per cent of postcodes in February. This represents the highest proportion since July 2004.

London saw the biggest rise, with prices up 1.1 per cent in a month, followed by the south-east, which represents an increase of 0.9 per cent. 

Commenting on the findings, Hometrack director Richard Donnell, said: "The housing recovery continues to spread across the country, building on the momentum that started a year ago.

"This is the greatest coverage of house price growth for almost a decade showing the extent to which market sentiment has improved in the last 12 months. The continued imbalance between supply and demand indicates we can expect further upward pressure on prices in the months ahead."

The number of sellers who achieved their asking prices also increased and stands at 95.8 per cent, which represents an increase from 95.3 per cent in January. 

Separate findings from Nationwide showed that the average price of a home was 9.4 per cent higher than a year ago.

This represents the biggest price rise since 2010. Robert Gardner, Nationwide's chief economist said that the rise in house prices had been partly driven by increasing demand and a constraint on supply.

He added: "Price growth is being supported by the fact that the supply of housing remains constrained, with housing completions still well below their pre-crisis levels, which was already insufficient to keep up with the pace of household formation."

Published 6th March, 2014

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