The improvements in the property market in England were widespread throughout the whole of 2013, according to new reports released this week by the Land Registry. It said that throughout the year to the end of November last year, only one region of England and Wales (the north-east) had experienced an annual fall in property price, with growth and improvement having been seen across every other area in the country.
The 0.1 per cent annual fall in the north-east, the Land Registry said, was an exception to a great year for the market in England and Wales as a whole, where property prices grew by 1.1 per cent for the month and 4.4 per cent over the same time in 2012. The average price of GBP167,353 was driven by growing confidence and demand, as well as the fact there were low interest rates and government schemes helping to bring people to the market.
"Help to Buy continues to energise the property market, while surging demand and increasing competition for available property will no doubt carry on supporting steady price growth in the year ahead," David Newnes of LSL Property Services commented on the latest figures. However, he said it is not all rosy at the moment. "There is still a chorus of concern about the lack of housing stock including new homes coming onto the market which could lead to demand outstripping supply and some buyers being priced out of the housing market," he added.
How real is the "concern about the lack of housing stock including new homes coming onto the market which could lead to demand outstripping supply and some buyers being priced out of the housing market,"? Will building more make houses more affordable? Check out this report of more than 42 years of data and see for yourself - the statistics tell a very different story...
While the threat of a housing bubble is still relatively low (prices are still four per cent below all-time peaks according to the latest Nationwide reports), a need for new homes has been something that has plagued the UK for the last year. Countrywide recently reported that the number of people chasing each house for sale amounted to 9.7, showing just how severely demand can outstrip supply unless more homes are brought to the market.
Throughout 2013, the Land Registry reported that the biggest increases in property prices were seen in London, where they jumped by 11.2 per cent over the course of the year. Between October and November, the prices in the capital were also up by 2.6 per cent.
- Wednesday 05 February 2014