This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
House prices are continuing to soar and are expected to grow further.
Only Way is Up for House Prices
The Royal Institution of Chartered Surveyors (RICS) and LSL Property Services/Acadata have reported on the property market. LSL found that the average house price is edging closer to £300,000 after the most recent increase.
Another firm, Home, says that the number of homes for sale has dropped to a new record low. There are now 45% fewer homes on the market than in November 2007.
However, while demand is surpassing supply and driving up prices, the prime central London market is experiencing a slowdown in sales, as Stamp Duty is now considerably more expensive on homes costing £1m or more.
Estate agent Winkworth reports that its profits will be “slightly below”1 market expectations this year, due to slow sales in the capital.
It blames Stamp Duty reform for “undermining demand for more expensive properties”, but adds that “this will still be the second best ever year for Winkworth, despite transactions still being 26% off their historic peak”1.
Simon Rubinsohn, Chief Economist at the RICS, comments: “Property is set to become even more unaffordable going forward, making the Government’s focus of boosting the delivery of new homes absolutely critical.”
He says it is “hard to get away from the issue of supply when it comes to the current state of the housing market”1.
The RICS reports that house prices have increased across all parts of the UK. Meanwhile, new listings have fallen since the start of the year.
The LSL/Acadata study found that house prices grew by an average of £2,500 in October, equivalent to £80 per day, reaching a tenth record high this year.
It believes that prices continue to be fuelled by London, where price rises averaged £24,636 in the past year, equivalent to 75% of the typical Londoner’s salary.
It also reports that last month was the strongest October for sales since 2007.
The LSL/Acadata index says that the average house price in England is Wales is now £288,421, up 0.9% on the previous month and 5.2% on October last year.
When London and the South East are excluded, the average house price rise in the rest of England and Wales was 3.9% over the past year.
1 http://www.propertyindustryeye.com/only-one-way-for-house-prices-to-go-and-thats-inexorably-up/
