Response to the latest House Price Index from the ONS
Tue 18 Feb 2014
Peter Rollings, CEO of Marsh & Parsons, comments: "Bucking the trend of a typical winter lull, average house prices rose 0.9% in the month to December 2013 with the average UK house price reaching 250,000 by the end of last year. Like chinks of sunlight, house price growth is breaking out across the whole country; however the picture remains gloomier in Scotland and Wales where property prices are yet to surpass the pre-financial crisis peak of January 2008.
"The London property market is burning the brightest, with a 12.3% annual house price increase in the capital hugely eclipsing the rate of growth witnessed elsewhere in the UK. In Prime London, the growth is even higher we saw the average value of two-bedroom properties rise by nearly 100,000 during 2013, indicating a 17% annual growth. Across the capital, the ratio of supply and demand remains out of kilter, which is helping to push prices upwards. In January, 19% more buyers entered the market in competition for 28% fewer properties, compared to a year earlier. This imbalance has created a strong sellers market, with properties selling in record time and for closer to the asking price than ever before. However, we expect a return to more normal conditions as we enter the traditionally busy spring market, when more people typically put their property on the market."