Monday, 16 December 2013

House prices rose by £1,394 in November

LSL’s latest index shows that house prices have risen by £1,394 in November alone, taking the average home value to a record £238,839 - 4.9 per cent up from November 2012. The price increase, though, is not just limited to London: on a year-on-year basis, values have climbed in all regions for the second month in a row.

The recovery applies to transactions too, with sales set to be 16 per cent higher in 2013 than in 2012.

David Brown, commercial director of LSL Property Services, comments: “The housing market is almost unrecognisable from twelve months ago... Competition is strong as a result of rising demand and supply of new instructions not growing, a factor that will continue to prop up prices in the long term. 

"Confidence is higher throughout the market, with the Help to Buy scheme and record low interest rates contributing to the positivity. Over the second part of this year, consumer confidence has snowballed as the economic picture improves, leading to a significant rise in sales. 
"The increased availability of mortgages - in part thanks to the government’s schemes - along with the greater range of mortgage deals on offer has opened the door to a new host of first-time buyers, making the dream of homeownership now a reality for thousands."

“Strong headway is finally being made towards a universal recovery," adds Brown, but cautions that there is "still uneven growth in property values across the country".

Indeed, London prices continue to race ahead with 9.2% annual growth in the capital vastly outshining the rest of the UK. 

"Between August and October, sales in London were up 27% on the same three months in 2012, reflecting intense demand for properties in that city, both from domestic and overseas buyers," continues Brown. 

“In his Autumn Statement the Chancellor unveiled plans to unleash a further £1 billion to unblock housing development, to address the critical shortage in supply. This will play a role in preventing prices rising too far too fast. But this is only the beginning, and it’s vital that house building is given greater attention in 2014 and beyond, in order to ensure the recovery rolls forward at a sustainable level.”

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