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First-time Buyers

No ‘bubble’ in UK house prices

paulajohn
Written By:
paulajohn
Posted:
Updated:
03/12/2013

The value of the average UK property has risen by 0.5% in the last month, and cannot be described as a ‘bubble’.

That’s according to the latest house price index from property research company Hometrack.

According to its figures, demand for housing across the UK grew by 3% in this period while the supply of homes for sale declined by 3.5%.

Supply and demand varied across regions with the greatest imbalance found in London and the South East where prices are up by 4.8% and 3.2% respectively since May.

The firm said the current situation outside of the capital and surrounding areas could not be described as a ‘housing bubble’ with ten regions taking more than 10 weeks sell a typical property.

On the government housing scheme, the firm said:

“While Help to Buy has boosted sentiment and increased activity, low mortgage rates have provided homeowners more ‘buying power’ than at any time previously.

“The change to Funding for Lending is likely to result in mortgage rates drifting higher. This will scale back the potential buying power of households which is important to keep price rises in check.”