London House Price Rise 'Shows Desperate Building Need'
Wed 15 Jan 2014
The fact that house prices in London are now rising at more than double the English average which itself is up
5.6% in a year shows the need for a massive new housebuilding programme, surveyors are claiming.
ONS figures show that although the monthly rise in November was 5.4%, down from 5.5% in October, the annual
house price rise in London is now 11.6%.
The second fastest rise was in the South East, up 4.5%, followed by the West Midlands, which was up 4.4%.
Excluding London and the South East, the UK annual house price rise is now 3.1%.
Richard Sexton, director of e.surv chartered surveyors, said the figures showed that first-time buyers were now
having to scramble over the small supply of affordable properties left.
ONS figures suggest the average prices first-time buyers are paying is now 6.4% above what they were paying in
November 2012, whereas for owner occupiers the rise is smaller at 5.1%.
Sexton said: We desperately need more construction in order to prevent the bottom of the market being priced
out entirely. In particular, we need more house-building in London and the South East where demand, and
prices, have risen the fastest.
However many estate agents claimed the rise in London was not a bubble and that the rate would probably start
to come down as more properties come onto the market.
Paul Smith, chief executive of the Haart estate agency chain, said: The fact that regions outside the capital are
now playing catch-up is highly positive news.
Peter Rollings, chief executive of Marsh & Parsons, said: House price growth has washed across every corner of
the UK, and todays figures show that in a third of regions, house prices have surpassed January 2008 levels.