Buyer demand and short supply in London and the southern regions continues to drive the national average higher, but at a lesser rate than last year. The supply crisis is worsening and August recorded the lowest number of properties entering the market for that month since the onset of the financial crisis.
Of course, the key driver for demand is the availability of mortgage finance, which remains abundant. Talk of interest rate rises at the Bank of England has not dented buyers' appetite. Competition between investors remains fierce in London and surrounding regions where the lack of supply is felt most keenly. In London and the East of England, the volumes of properties entering the market are down 15% and 18% respectively year- on-year and down 75% and 73% vs. August 2008.
These and other southern regions are clearly sellers' markets and prices remain firmly on an upward trajectory. Marketing times in the South East region have been the lowest in the country since February. Across much of the nation, marketing times are currently around the lowest we have witnessed since 2008; in the North, however, marketing times are considerably higher than in the South and prices are not rising appreciably.
Overall, the current mix-adjusted average asking price for England and Wales is 6.5% higher than it was in September 2014, and it is expected that further upward pressure on prices over the coming months.
