This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Confidence seems to have returned to the UK property market following the election, with some asking prices in London increasing by over £10,000 in the last month.
The latest Home.co.uk price index shows that average property price rose across England and Wales for the fourth straight month. However, the report also shows that the supply of property for sale was behind demand in every area apart from Greater London.
Increases
Property asking prices increased by 2% over the last month in the Greater London region and by 1.1% overall throughout England and Wales. This increase takes the average annual home price appreciation for England and Wales to 5.9%, with further price rises predicted for this year.[1]
Freed from the threat of political uncertainty, the prime central London market has not yet regained the momentum lost in the past eighteen months. Property prices are seemingly stagnant, with flats in some areas spending up to 50% more time on the market than they did in June 2014.[2]
Furthermore, time on market data also shows an increase in momentum in Scotland, Wales and the North of England during the last 12 months. However, southern areas have also indicated slight increases in marketing times, with greater house prices lessening demand.
UK property asking prices rise again
Relentless
Doug Shephard, director of Home.co.uk, said that, ‘whilst 2015 is looking like a much better year for the northern regions, Scotland and Wales, hopes that the market in London and surrounding southern regions might slow to a more sustainable pace, have been swept aside by further relentless price rises.’ Shephard feels that this will, ‘create significant cause for concern at the Bank of England.’[3]
‘For the time being the key economic drivers of ultra low interest rates and low supply of property for sale remain,’ he continued. ‘Buy-to-let landlords and first-time buyers alike are able to borrow very large sums to purchase property at very low rates of interest. And this situation looks set to drive prices higher in the near term,’ he added.[4]
[1] http://www.propertywire.com/news/europe/uk-asking-prices-growth-2015061210623.html
