The supply of new homes for sale in the capital is getting ever more scarce as it reached a new record low in August 2015, property website house.co.uk latest figures show.
The overall property market in the UK remains robust despite shocks from China and fears about a Bank of England base rate rise. Healthy demand from buyers is supported by the availability of mortgage finance.
However, the supply is dropping to worrying levels and an evidence for that is the growing competition between buyers and investors for available properties, especially in London and the surrounding areas.
August recorded the lowest number of properties entering the market for that month since the onset of the financial crisis, according to house.co.uk.
In London and the East of England, the volumes of properties entering the market are down 15 per cent and 18 percent respectively year- on-year and down 75 per cent and 73 per cent compared to August 2008.
These and other southern regions are clearly sellers’ markets and prices are positively expected to rise further in the future.
Marketing times in the South East region have been the lowest in the country since February. Across much of the UK, marketing times are currently around the lowest we have witnessed since 2008.
The North, however, is going against the grain with marketing times considerably higher than in the South and prices are not rising appreciably.
Overall, the current mix-adjusted average asking price for England and Wales is 6.5 per cent higher than it was in September 2014, and expectations are that there will be further upward pressure on prices over the coming months, house.co.uk says.
Further findings of the website’s latest research include:
- The average Greater London house price has risen by £60,000 (12.8 per cent) over the last 12 months.
- Supply of new homes for sale in August 2015 fell by 59 per cent on August 2007
- Prices went up by 0.4 per cent overall in England and Wales during the last month
- The South East remains the UK’s fastest-moving regional market and prices surpass Greater London with a 6-month rise of 6.1 per cent.
- The average annual home price appreciation for England and Wales has increased to 6.5 per cent
- Asking prices have risen in all English regions, Scotland and Wales in August. The biggest rises were observed in the East of England and the South East (0.9 per cent and 1 per cent respectively)
