Asking prices for residential properties across England and Wales are on the up, according to new figures released today.
Data from the latest Asking Price Index released by Home.co.uk indicates that prices rose by 0.4% during the last month. More substantial growth was evident year-on-year, where asking prices have risen by 5.7%.
Month-on-month by region, the largest rise was recorded by the East of England, where asking prices were up by 0.7%. In addition, homes were found to be selling faster, with the average time for a property to sell now standing at 177 days. This represents the smallest time period taken for a home to sell since November 2008. The South East was found to be the quickest regional market, with homes going an average of just 59 days between sales.
As a whole, the supply of property remains low, falling by 6% in comparison to the same month a year ago.
Further data from the Index indicates that an improvement in buyer demand carries on forcing prices up, particularly in London and the South of England. This in turn is increasing confidence amongst vendors.
‘The UK property market is in good shape overall,’ stated Home.co.uk director Doug Shephard. ‘Property supply remains behind buyer demand in most regions as evidenced by falling time on market figures,’ he continued.
Mr Shephard went on to say, ‘in Greater London, where marketing times showed a worrying increase earlier in the year, a post-election buyer resurgence has taken up the slack. Only in the North East region, where the recovery is still in its infancy, do we see a significant rise in supply and this has served to make prices dip this month.’
Asking prices for property on the rise
Figures from the Index also suggest that the prime central London market is showing signs of a recovery. Prices have been on the up since May, with time on market figures starting to fall.
However, time on market data for all areas shows that North Yorkshire and the North East have improved the most during the last year, with decreases in average market times of 9% and 6% respectively. This said, these regions still remain amongst the slowest markets in comparison to the rest of UK.
Shephard noted, ‘with the recent political uncertainty now consigned to history, UK property has a clear path forward. Consequently, buyers are back in force but hampered by a lack of supply in most regions. We expect only minor price rises towards the end of this year.’
‘Demand, on the other hand, looks set to remain high, with indications from the Bank of England that interest rates will stay at their record low until at least next year, perhaps later,’ he continued. ‘Hence, we expect that further competition between aspirant homeowners and landlords will continue to drive prices higher in a growing number of areas, especially in the South.
Concluding, Shephard said, ‘despite clear improvements in marketing times, prices remain stagnant in the North of England and Wales and we do not expect any significant rises until 2016 in these regions.’