London effect boosts house prices in May
Monday, 28 May 2012 1:48 PM
House prices edged up 0.2 per cent across England in May but that was mainly down to a 0.6 per cent increase in London, according to Hometrack.
The property company said the South East and East Anglia saw increases of 0.1 per cent but prices were static or falling everywhere else.
Apart from prices, the only other market indicator used by Hometrack to show positive movement was the percentage of asking price achieved, which rose from 93.1 to 93.2 per cent. The average time on the market remained static at 9.3 weeks. However, these figures depended on London and the South East and were not representative of a trend across the country.
The number of new buyers registering with agents continued to slow, with May’s 0.4 per cent increase contrasting with 2.1 per cent in April and 4.4 per cent in March. The volume of new listings on the market was up 2.2 per cent compared with 4.8 per cent in April.
As an illustration of the London effect, the last three months have seen prices rise 1.4 per cent in the capital and demand rise sharply. In contrast, demand across Northern regions has risen by nine per cent while supply is up 22 per cent and as a result prices are down 0.5 per cent.
The average time on the market ranges from just 5.1 weeks in London to 13.9 weeks, more than three months, in Wales.
Hometrack says the trends in supply and demand match the pattern seen in previous years, with overall levels of demand and sales agreed slowing after Easter.
Research director Richard Donnell said: “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.”
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