The latest monthly national housing survey by Hometrack has found that property buyers in London are paying over 99% of the asking price, with properties taking an average 2.7 weeks to sell. The national average was 96.2%, the highest percentage of asking price recorded since 2004. All regions measured over 93%.
House prices increased by 0.6% in March. Demand was found to be outstripping supply, with the number of new buyers registering with agents increasing 6.6% last month, while the supply of housing for sale grew by just 1.9%. The gulf between supply and demand has been increasing over the last five months, making it likely that house prices will continue to rise.
Countrywide’s quarterly review supports this, showing there are 12 buyers chasing each new property coming on the market – the highest level since 2008.
The average time a proprerty takes to sell, nationwide, has fallen below 8 weeks (7.9) for the first time since 2007. With the Help to Buy scheme in place to encourage first time buyers, as well as record low mortgage rates and an improving economic outlook, there is now a great deal of interest in the housing market. The number of accidental landlords in the private rented sector is therefore likely to continue to fall.
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