UK house price increases continue to outpace capital
The monthly report covering August showed that UK property prices have risen 10% in the past year and 1.1% month-on-month to an average of £221,797.
London property prices increased 5.2% on the year to reach £521,383.
The supply of properties for sale in the UK in September dropped 14.3% compared to last year and was down 3.1% since August.
Paul Smith, CEO of Haart, said the regions are now leading the way in UK house price growth.
“However, this is likely to only be a temporary trend as the divergence between supply and demand is much greater in London than the rest of the UK and this will eventually push up prices. In London there are 78% more buyers chasing every property on the market than in the UK as a whole, resulting in a much more competitive property market. This explains why property prices in the capital have risen nearly 4% in the last month, compared to just 1% in the UK as a whole.”
He added that while the government’s Starter Homes Initiative was a step in the right direction, turning generation rent into generation buy would not ‘be like waving a magic wand.
“A boost in the level of starter homes is long-awaited and much needed but it is important that the homes built are genuinely affordable. Our data shows the supply of new homes coming onto the market has fallen 14.3% annually across the UK and 18.5% over the same time period in London, demonstrating the need for urgent action if Mr Cameron’s pledge is to be anything more than political rhetoric.”