Rightmove.co.uks May 2013 House Price Index sees a full set of positive increases for both the month and years. This compliments the record average asking prices reported for the UK and London.
- National average asking price of £249,841 with a 2.1% monthly increase
- 5th month of rises means that we have a 9.1% increase so far in 2013 – the strongest start to a year since 2004
- Surge in prices has been led by London, South East and East Anglia which all hit all-time highs
- London as passed the £500,000 milestone and now stands at £509,870 – more than twice as expensive as the national average
Unsurprisingly the cause of this has been cheap money and more positive mood starting to release pent-up demand as evidenced by:
- Rightmove: “We’ve seen record activity – 1.25 billion pages in April, up over 20% on 2012”
- Surveyors: “We’re flat out carrying out mortgage valuations, not seen this for several years”
- London agent: “Last year’s activity was crazy, this year’s is ridiculous”
Miles Shipside, Rightmove director and housing market analyst comments:
“The tumbling of records is being driven by the equity-rich generation with a definite southern bias, though agents in most parts of the country are reporting strong demand for well-priced and decent-quality stock. Despite a new national record, it’s not ‘green-shoots of recovery’ across the board, especially for the deposit-strapped mass-market. They must wait patiently until January when the Help to Buy scheme extends to the resale market, unless new homes developers can increase building dramatically this year.”
England & Wales Regional Picture
As already mentioned the London, South East and East Anglia have been leading the charge of increased asking prices with so far for the year 8.6%, 3.7% and 1.5% respectively.
However for the straight forward monthly change the North actually leads the regions with a 4.2% increase, closely followed by East Anglia with a 4.0% increase.
At the bootom of the regional picture no region has reported a negative change, although West Midlands only just with a 0.2% increase, followed by the South West with a slightly better 0.6% increase.