Asking prices in the South East region grew by 10 per cent in the year to October, outpacing London as the fastest growing region across England and Wales, says Rightmove.
According to the online estate agent’s monthly index, the average asking price of property coming to market in the South East reached £355,874 in October, up from £323,546 a year earlier.
In comparison, asking prices in London hit £596,692 this month, rising 9.6 per cent from £544,232 in October 2013.
Across England and Wales, asking prices rose 7.6 per cent from £252,480 in October 2013 to £271,669 this month.
Rightmove director and housing market analyst Miles Shipside says: “The ripple effect of buyers priced out of London combined with those cashing in and moving out of the capital means that the South East has taken London’s boom-town crown.
“Upwards price pressure is being further fuelled by a reluctance of homeowners in the hotspots of the South East to come to market. Some can see the value in holding onto their fast-appreciating property asset, whilst others cannot find anything else for sale locally on the market that tempts them to sell and move on.”
Legal & General Mortgage Club director Jeremy Duncombe says: “While house prices continue to rise, the pace appears to have slowed down. With increases of 7.6 per cent over the past year a cooling off period of sensible growth may be just what the market needs in London and the South in particular. For housing to be affordable, any property price increases need to be closer to the rate of inflation, otherwise the majority of people risk being frozen out of the market in the long-term.
”Fundamentally we suffer with a severe shortage of housing supply in the UK. However, the good news is this issue seems to be prominent on the political agenda. The government and the industry need to work hand in hand to tackle the problem and to ensure the UK housing market is sustainable and stable in the long-term.”
Source: Mortgage Strategy Magazine