London market pushes house prices up by 0.2%

London market pushes house prices up by 0.2%

The Hometrack monthly national house price survey has been released today, and shows a national price rise of 0.2% over the last month.  This increase has been pushed up by the performance of London.
London saw house prices rise by 0.6% over the last month.  In the South East and East Anglia there were increases of 0.1%.  In all other regions prices were either static or fell slightly.  The North East, North West, Wales and Yorkshire and Humberside all reported price falls of 0.1%.
Richard Donnell, Director of Research at Hometrack commented:
“The volume of new buyers registering with agents grew by 0.4% in May, down from increases of 2.1% in April and 4.4% in March.  The growth in the number of sales being agreed slowed significantly in May, rising 3.8% compared to increases of 10.1% and 13.2% over the previous two months.  These trends mirror the pattern seen in previous years with overall demand and sales agreed slowing after Easter.  Increased mortgage rates and mounting concerns over the impact of the Eurozone on the UK’s economic growth and employment are likely to keep demand and prices in check as we move into summer.”
As market conditions have improved over the first quarter of 2012, there have been rising levels of supply as sellers try to take advantage.  Properties are currently on the market for 9.3 weeks and the proportion of the asking price received has risen to 93.2%.  However, there is a north-south divide and the market improvements are concentrated in Southern England.
Richard Donnell adds:
“London has seen demand rise ahead of supply over the last three months and prices move 1.4% higher over the same period.  In contrast the balance of demand and supply across Northern regions is the reverse of Southern England.  Over the last three months demand has risen by 9% in Northern regions while supply has expanded by 28%.  The net result has been a 0.2-0.5% decline in prices over the last quarter.”
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