Supply shortfall driving London housing market
EACH property on the London market is chased by 13 buyers, according to shocking new figures that show the strength of demand in the capital.
According to estate agents Barnard Marcus, the number of buyers has surged by 25 per cent in the past year, and the number of transactions is up 20 per cent from February 2013.
The ratio of buyers to instructions to sell across the country was 6.2 to one 12 months ago, and is now 7.7 to one. In London, the ratio is nearly twice as high, at around 13.5 to one.
“The shortage of available property is resulting in rapid price growth, with the average UK house price now 12 per cent higher than this time last year and showing no signs of slowing down unless the supply/demand imbalance is rectified,” said David Plumtree of Barnard Marcus.
Rightmove also suggests that house prices are picking up quickly with the start of spring, with a 2.1 per cent boost between February and March recorded. Annually, the price of an average house has grown by 11.3 per cent since March 2013. The firm adds that the average price of £552,530 is a record level for the capital, above £550,000 for the first time.
“Demand continues to outstrip supply in many areas and with the spring market approaching, further record highs are to be expected. Buyers seeking better value are pushing up demand and consequently prices in more affordable areas, causing a wave of new price peaks in areas before rolling on to the next cheaper location,” added Miles Shipside, director of Rightmove.
Despite the surge, some parts of the capital where prices are jumped earlier last year are now seeing more modest increases. Rightmove says that the four most expensive boroughs in London have seen prices fall by 1.3 per cent since February.