News
London growth continues to boost property prices
Rapid growth in London property prices continued to drive the UK national average according to data from the Office for National Statistics.
Figures covering the 12 months to March 2013 showed a mixed picture across each nation in the UK. Property values in England and Wales rose by 3.0% and 1.2% respectively in the last year while prices in Scotland and Northern Ireland suffered declines.
House prices increases in England were largely driven by a 7.6% jump in London prices and a 3.3% rise in the South East. Discounting these two regions, house price growth in England was virtually flat at 0.6%.
The average house price in England stands at £244,000, according to the government body. This compares to £178,000 in Scotland, £157,000 in Wales and £130,000 in Northern Ireland.
Again, figures for England are highly skewed by the capital which boasted an average property price of £398,000 during the month. Excluding London and the South East the average house price was £187,000.
Karelia Scott-Daniels, managing director of Manse & Garret Property Search, said: “The property market, like the mortgage market, is gaining ever more momentum, with London and the South East the primary drivers of growth.
“The 7.6% annual price rise in the capital is predictably high but should not obscure the fact that many other areas of the UK are struggling.
“For properties that are priced correctly, there is no shortage of buyers. Properties that might have languished on the market a year or two ago, even if priced correctly, are now selling far more quickly.”
Giles Hannah, managing director of London estate agency VanHan, said: “The national average figures demonstrate a clear divide between London, the home counties and the UK as a whole. In London house prices are likely to continue on an upwards trend over the next three years with a severe lack of supply of new homes actually ready and completed.
“Buyers from Singapore and Hong Kong are snapping up properties off plan in new developments, particularly in Covent Garden. This is not a bubble, the market is simply rising with increased demand, a severe lack of supply and an improving economy in the UK, which shows no signs of slowing.”
