A north of England estate agent says the government should urgently address what he calls the London housing market bubble, to reduce the price gap between homes in the south east and the rest of the country.
Bill Kimmitt of Kimmitt and Roberts, which has three offices in Tyne and Wear and County Durham, says house price indices and media reporting on the market are skewed by data from south east England which produce a misleading picture of the nationwide position.
Recent surveys such as the Nationwide and Halifax house price indices, showing average price rises across the country, are quite misleading he says.
They relate to sales completed to June, so reflect prices agreed in March or April. The mortgage restriction measures that were put in place about six weeks ago have definitely had an effect on the market he says.
But the national figure is artificial mostly because of the London and south east skew.
If you have got a 20 per cent rise in London and the south east but an average rise nationally of 11 per cent, it is obvious what is happening and the reason for it he says.
I don't think in 30 years in the business, I have ever seen such a wide range. The problem we have is that government policy is led by what happens in the south east.
He says that unless politicians curb the London market, it will damage the housing market in other parts of the UK.
.png)
%20A%20property%20tale%20for%20our%20times.png)
Comments
A desperate call to action for the government to step up. Now where have we heard that before Will it make a difference Certainly not. The government won't act until it's too late and the bubble of the property industry bursts once again.
Good luck with that. Its something that needs to happen, and has needed to happen for a while, which means, knowing this government, it wont happen at all. Its not in their interests to curb the frankly ridiculous prices in London, so dont hold your breath for any action.