UK property hikes outstrip London for now
In the year to September 2015 UK prices rose by 10% compared to 5.2% in London – but on a monthly basis UK prices increased by 1.1% compared to 3.6% in the capital.
The supply of new homes coming onto the market has fallen by 14.3% annually across the UK and 18.5% in London.
Paul Smith, chief executive of haart, said: “The regions are now leading the way in UK house price growth with the nation’s average house price increasing 10% in the last year, almost double the pace of the London market which saw a 5.2% annual increase.
“However, this is likely to only be a temporary trend as the divergence between supply and demand is much greater in London than the rest of the UK and this will eventually push up prices.
“In London there are 78% more buyers chasing every property on the market than in the UK as a whole, resulting in a much more competitive property market. This explains why property prices in the capital have risen nearly 4% in the last month, compared to just 1% in the UK as a whole.”
He added: “David Cameron’s promise of 200,000 new starter homes is a step in the right direction toward helping first-time buyers onto the property ladder but turning ‘Generation Rent’ into ‘Generation Buy’ won’t be like waving a magic wand.
“A boost in the level of starter homes is long-awaited and much needed but it is important that the homes built are genuinely affordable.”