South of England Latest Region for Higher Average House Prices
Thanks to a massive imbalance in supply and demand, the UK housing market continues to experience strong push forward with rising house prices. This is not evident any more currently than in the South of England. Property values there have risen more than 11% in the past 12 months to February. Overall, house prices have increased more than 7.5% in the last year.
According to the Office for National Statistics, house prices across the country continue to increase due to high demand for a limited number of properties. London maintains its spot atop the list for average price of property at almost £525,000. House prices in the capital city are still roaring ahead, but at a slightly slower pace than in recent months. Before the crash the average price was half the current price.
Nick Leeming of estate agency Jackson-Stops & Staff commented on the latest house price data to emerge, saying: “There are signs that some areas are seeing slower growth rates.
"This follows lower levels of demand at the top end of the market, with our central London offices recording on average 2.4 prospective purchasers to every prospective seller in the last year, compared to 3.6 the year before.”
Leeming added: "The lower demand stems from higher transaction and holding costs, such as the revisions to stamp duty, which is adversely affecting both domestic and overseas demand. This means that vendors in the capital who need to sell are reducing asking prices in order to do so."
Howard Archer of IHS Global Insight commented on the repeating trend, saying: "House prices should be underpinned by reasonably healthy buyer interest, supported by largely decent economic fundamentals and the probability that interest rates will not rise this year, as well as by a relative shortage of properties.
"However, there could well be an appreciable easing back in buyer interest from the buy-to-let and second house buyers now that the April rise in stamp duty has kicked in. Increasing domestic economic and political uncertainties could also rein in housing market activity, especially in the run-up to June’s EU referendum."