Home owners in London are enjoying such an extraordinary housing market rally that many are putting plans to sell on hold.
Instead, they are sitting back and watching their homes grow in value by an average of £2,100 per month – but also seeing their next house move within London look impossible.
The average price rise is taken from data excluding all homes over £1m – which knocks out much of Kensington & Chelsea, and Westminster.
Data from property search engine Home, which compiles its statistics in partnership with Calnea Analytics, the Land Registry’s number cruncher, says there has been a 19% fall in new property listings compared with this time a year ago.
One London agent, Douglas & Gordon, puts the shortfall much higher, saying that valuations and new instructions are 30% down on last year.
According to Home, properties in London are taking 75 days to sell (four days less than in April 2012), while prices have risen by 7.3% over the last year.
Home says that the London property market has not entirely escaped the impact of the current economic conditions and restrictions on mortgage lending.
As a result, there has been a dampening of demand for properties towards the lower end of the market in less affluent areas. However, soaring average prices in Greater London mean home equity is being “accumulated at a feverish pace”, says the site.
It says: “In effect, market demand is being driven by those who can afford to move and have already benefited from significant gains in equity value.”
Doug Shephard, Home director, said: “Such rises in property values reflect the insatiable demand for property in the capital, and with supply so limited prices look set to soar even higher this year. Supply is likely to remain low as London home owners hang on to their highly appreciating property assets.
“Of course, the reality is that such equity gains can only be realised if the owner actual sells their property and either downsizes or moves to a far more affordable region.
“Given the relative cost of moving up the ladder, in many cases buying another property in the capital is likely to neutralise these gains.”
London prices are currently 4% higher than their previous property boom peak set in April 2008, and rising.