Monday, 21 August 2017

Hoorah! House prices go up again in June

HOUSE prices posted another strong increase last month, as momentum continues to build in the property market.

HOUSE prices posted another strong increase last month, as momentum continues to build in the property market.

The latest housing survey from Hometrack shows that prices jumped by an average of 0.4 per cent in June, mirroring the level of increase witnessed in May.

Both May and June boast the biggest monthly rise in prices since June 2007, suggesting government initiatives such as the Funding for Lending Scheme (FLS) and the Help To Buy scheme are beginning to have more of an impact.

A record 31 per cent of postcodes experienced an increase in the value of their homes during June, with just 3.1 per cent registering a drop in prices, the lowest level for three years.

The lack of new residential properties coming on to the market is a key driver causing the rise in prices, something Richard Donnell, Hometrack director of research, attributes to two factors.

He said: “First is an increase in the number of first-time buyers, who increase demand but add nothing to available supply,” he said.

“Secondly, existing occupiers are looking to identify property they want to buy before putting their homes on the market, which boosts demand ahead of any growth in supply.”

House prices went up in six out of 10 regions. .including a 0.4 per cent rise inEast Anglia and a 0.3 per cent increase in the south-east. London, however, continues to show the biggest increase, with prices up by 0.9 per cent for the second month in succession. The capital also witnessed an increase in the percentage of properties selling for their asking price, hitting 96 per cent - the highest level for six years.

There is a clear divide in market performance between London and southern England and the rest of the country, although this is gradually narrowing. In London it takes just 4.1 weeks to complete a sale, while in the North and Midlands the average time taken is over 10 weeks. Hometrack expects prices to continue to go up over the summer, albeit at a slower pace. It claims that aggressive pricing of stock is the most likely factor to curtail house price growth in the coming months

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