London house prices spring into the new year

According to the latest research from Home.co.uk, 2016 kicks off with significant optimism, especially in the capital region.

Related topics:  Property
Warren Lewis
12th January 2016
London 4

Sellers know full well that there is a shortage of supply and therefore see no need for cautious pricing. Consequently, prices jumped nearly a percentage point over the last month in Greater London, which corresponds with an additional £15K on the average home value.

Despite a small uptick in supply, the total number of properties on the market has fallen to a new low. Just over 386,000 properties are currently for sale: 47% less than in 2008. This trend looks set to dominate the UK property market in 2016.

So buoyant is the market that prices rose 0.3% across England and Wales over the last month, which is the highest such rise observed for January since the onset of the financial crisis and is at odds with the 'normal' seasonal trend.

High demand means that the typical time on market for England and Wales has hit a new post-crisis low for the month of January: nine days less than a year ago.

Overall, the current mix-adjusted average asking price for England and Wales is now 8.2% higher than it was in January 2015. For as long as the supply-demand imbalance worsens, this figure will continue to rise.

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