House prices up 0.6pc in April
In April London continued to register above average growth (0.8%), driven by the lower value markets.
There are signs of growing price resistance on the part of buyers in London, which could check the rate of house price appreciation in the coming months.
The time to sell has also increased from 2.7 to 3.4 weeks and there are declines in the proportion of areas registering higher prices compared to 2013H2.
Nationally, demand for housing continues to increase, rising by 3.3% whilst new supply continues to grow at a slower rate, rising by just 1.9% over the month.
Regions outside London continued to strengthen with 48% of postcodes registering higher prices in April – three times higher than the level a year ago and the highest for a decade (June 2004).
Richard Donnell, director of research at Hometrack, said: “House prices increased by 0.6% in April, unchanged over the month. Demand (up 3.3%) continues to grow faster than supply (up 1.9%) maintaining the supply/demand imbalance that underpins the upward pressure on house prices.
“London continues to register above average growth (0.8%) but market conditions continue to strengthen in the regions outside London, particularly southern England.
“Nationally, the average time on the market is down to 6.3 weeks, the lowest since June 2007.
“While the outlook is for further price increases there are emerging signs of growing price resistance in London which could check the rate of house price appreciation in the coming months.
“The continued improvement in market conditions across the wider housing market is demonstrated by prices increasing across 48% of postcodes outside London over April – this is the highest coverage of price rises for a decade (June 2004) and is three times higher than the level seen a year ago (16%).”