Press response to the ONS' latest House Price Index
Tue 17 Jun 2014
Peter Rollings, CEO of Marsh & Parsons, comments: "The growth rate currently being experienced in the London property market is eclipsing the rest of the UK, with house prices in the capital rising by nearly 19% in the year to April 2014. With its international appeal as a sanctuary for capital investment, and its allure as a vibrant city to live and work in, the level of demand for property in London is unparalleled across the rest of the country.
"But weve reached a turning point. After a very lively start to the year, where an acute lack of supply and subsequent competition for homes pushed prices higher, were now sailing into steadier waters. Stricter controls for mortgage affordability and the renewed housing stock is moderating the market and property price growth has slowed. As a result, in Prime London the ratio of registered buyers per available property has fallen from 24 in January 2014 to 16 in June, so as the market returns to more normal trading conditions, buyers can make the most of the extra breathing space.
"London has long been akin to its own city state, and is wholly unrepresentative of the broader nationwide picture. If the government or the Bank of England were to slam their foot on the brake too heavily, they risk setting back the emergent housing market recovery outside of the capital. In his Mansion House speech the Chancellor indicated that he will not tinker with the Help to Buy scheme, which is buoying the lower end of the market and helping redress the imbalance across the country."