London property sellers bag 99pc of the asking price

Guy Bentley
Follow Guy

House prices have risen for the 14th consecutive month, with a 0.6 per cent rise in March, according to the monthly national housing survey conducted by residential property analysts Hometrack.

50 per cent of postcode districts reported an increase in prices.

The survey also showed that those who are selling property in London were able to get a whopping 99 per cent of the asking price, while the average is around 96 per cent.

Houses are being snapped up fast, with properties remaining on the market for just under two months before the sale is agreed. However, London once again outstrips the rest of the country with houses staying on the open market for only 18 days.

The survey follows data released by the Land Registry on Friday showing house prices rising in England and Wales by 0.7 per cent in February.

The average house price in England and Wales has climbed to £170,000.

The problems of rising demand and scarce supply are unlikely to be resolved any time in the near future.

Hometrack research director Richard Donnell said:

The real driver of higher house prices is record low mortgage rates and strong demand from first-time buyers and investors who have no property to sell, which is compounding scarcity.

Howard Archer of IHS Global Insight said "the risk of a house price bubble developing is very real as there is appreciable upward momentum in activity and house price stength is becoming ever more widespread."