The housing market saw its ninth price rise in a row in October, with prices increasing by 0.5% month on month and supply of homes on the market falling by 1.6%. As a result of the Government’s Help to Buy scheme, there are also a higher number of buyers able to offer sellers the exact asking price for their property.
According to recent figures, house prices have risen by over £200 per day in the past month with the average value of a property rising by nearly £7,000.
Richard Donnell, research director at Hometrack, said: “Improving confidence amongst buyers has been fuelled by low mortgage rates and positive news on a recovering housing market.”
At 95.2%, the figure for the number of seller asking prices being achieved is almost at its 2007 all-time high of 95.7%.
Demand for property saw its highest increase in London, rising to 6.4%. As a result, London’s house prices rose by 0.8% in October. In the South East, prices rose by 0.7%, up 0.1% since September. This picture contrasts with the North East which was the only region in the country where prices remained unchanged.
Richard Donnell said: “In the face of short supply, agents will continue to push asking prices ahead, but the question is how much further buyers are willing to go to meet higher prices? Vendor expectations over prices are increasing and new supply is likely to come on to the market at higher prices.”
As widespread debate continues over whether the UK market is heading towards a property bubble, Donnell said: “Talk of a national housing bubble is over done but any weakening in demand, against the backdrop of tight supply, will result in a slowdown in house price growth.”
Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.
Julie is a member of the Insolvency Practitioners Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.