House prices are being kept up by lack of stock – but affordability appears to be driving new buyers away.
The latest Hometrack report, out this morning, says house prices rose by 0.3% this month, but stock volumes and the level of sales agreed were down. Also down was the rate of rise in new applicant numbers.
The house price rise was the highest monthly growth for three years, says Hometrack.
London house prices rose the most (0.7%) this month. But prices were down in just one region, the North-East.
In London, prices rose in 60% of postcodes. Across the rest of England and Wales, there have been price rises in one fifth of postcodes.
Supply continues to be a headache for many agents. It has grown by 13% over the last two months, but by just 3.5% over the last six. Demand has risen by 19% in the last two months, but the rate of increase fell this month, and is lower than this time last year.
Time on the market stands at just 4.9 weeks in London, the lowest since October 2007. That compares with 11.8 weeks in the Midlands and North.
Richard Donnell, Hometrack’s housing analyst, says market sentiment is improving, and said it should continue to do so thanks to Budget initiatives and Funding for Lending.
However, he cautioned: “While scarcity of homes, and support for lending and new housing, will act as a support to pricing levels, the problems of affordability and deposit levels still remain serious impediments to a full-blown housing market recovery.”
Comments
Thick Dave, did this happen in Japan?
at Anon- dont read then, idiot, vote with your feet, or are you Longden who has been made to look completley thick?
What a nonsnse the comments on this site are becoming. Clueless idiots!
Love RM, a shareholder! Up 40 points today as well
PS Not an EA or no doubt would have a slightly different view!
Mr Marx - Profit is allowed, that's good, you wont mind Rightmove making lots then.
@ S A longden, so nothing for the land then?
In your little world no developer would build then? This is not a communist country , profit is allowed, it funds all the benefits.
The Daily Telegraph's article in last Friday's edition was good. The columnist has it right - houses are ridiculously overpriced. They really should be the cost of the rebuilding and furbishing full stop. Perhaps 2% extra for a superb location. Otherwise too many decent workers are excluded, and quite frankly homes are to be lived in not be 'nice little earners' one can do that with stock and shares.
God forbid we should ask the people that sell houses what their view of the market is. Wait for land registry if you want, but I prefer to know what going on in my own office.
I might believe some of these reports if they appeared to backed up by facts rather than just agents opinions.
Only a month ago we had Halifax reporting annual house price rises approaching 15%! It made the 10 o'clock news and national newspaper headlines so it must be right!
Let's wait and see the real figures when the Land Registry report comes out.