Peter Rollings' response to the latest property sales transaction data from HMRC
Tue 24 Sep 2013
"This mornings figures demonstrate the continuing upwards trend in the UK housing market which began in December 2008. Monthly transactions in August 2013 were 0.4% higher than in July, and 19% higher than the same time last year which is very positive news for the UK housing market. But the volume of transactions is still just over half that recorded during the market highs of 2007. With this in mind, these UK figures do not represent a housing bubble, but a steady recovery in which the UK market continues its orderly rise.
"However, the London property market has noticed a much more rapid growth in recent years. London is a market within a market, where the price of property bears little relationship to earning multiples and affordability. Ultimately it relates to supply and demand, and while there are 18 buyers for every available purchase, property is changing hands in record time and for close to the asking price. While interest rates remain low, Prime London property will continue to be seen as an attractive investment opportunity for both UK and overseas buyers, and prices will remain high. But with more property changing hands in London, it will hopefully help to stabilise price growth."