Property Reporter



Serious supply issues fuel East England house price leap

Line Spacing+- AFont Size+- Print Forward to a friend Property
Serious supply issues fuel East England house price leap

The spring price surge comes early to the East of England driven by an acute lack of supply, and annualised price rises (12.2%) in this region have now overtaken both Greater London (12.0%) and the South East (10.3%).

Demand remains strong in all three regions and supply has a long way to catch up, according to the latest Home.co.uk Asking Price Index.

Across England and Wales, prices remain on a strong rising trend and this looks set to continue as interest rates are currently on hold until at least 2017. A further increase of 0.7% this month in the mix-adjusted average means the annualised rise is currently a very healthy 8.1%.

The total stock of property for sale remains very low, and scarcity will continue to be one of the key drivers of the 2016 property market in the UK. The second key driver is, of course, ultra-low interest rates. The number of properties entering the market is down 8% compared to a year ago. The hardest hit is the West Midlands where 17% less new stock arrived on estate agents' books this January vs. January 2015. The East of England is also in the midst of a property drought and 14% less stock was registered on agent portfolios last month.

Looking to the North and Wales, the picture is very different. Only small drops in numbers of properties entering the marketplace have been observed in the North East, North West, Wales and Yorkshire. Supply in these regions remains relatively buoyant and, consequently, prices show little if any upward progress.


North of the border, where the 'offers over' system prevails, we have witnessed some very optimistic pricing this month with a jump of 2.3% since January. In view of the long time on market compared to southern England and the crisis in Aberdeen due to low oil prices, it is hard to imagine that such prices are in step with the real market dynamic.

Overall, the current mix-adjusted average asking price for England and Wales is now 8.1% higher than it was in February 2015, and this figure looks set to rise further in 2016 due to worsening supply in an increasing number of regions.

Got something to say? Leave a comment below:

You must be logged in to leave a comment

More articles from Property

FTBs fight back

How much would you pay to live near a outstanding primary school?

House hunters at lowest levels for 2 years

How many properties in the capital are priced at the average or below?

Have we neared the limit in house price rises?

How do you pick the right estate agent?



Latest from Financial Reporter

Engaging with millennials - the key to tackling pensioner poverty?

The Lending in Retirement Debate Isn't Going Anywhere

FCA appoints PRA exec to Director of Supervision

Software provider Target sold in £112m deal


Latest from Commercial Reporter

New funders and commercial property

ASTL: Upward trend for bridging continues

Fleet makes criteria changes for limited company transfers

Are SME overdrafts dying out?


Latest Comments

Paul
Paul 25 May 2016

Estate agents are pathetic when it comes to fees. They have this 'I had to do it at 1% because that's what the others were quoting' mentality. We are the most expensive agents in our area, charging double...

view article
HMO Midlands Landlady
HMO Midlands Landlady 24 May 2016

Tenants disappearing into the night is common from shared houses ( licensed and un-licensed HMO's) often when they owe considerable rent- they remove all their possessions, leave key in room and tell other...

view article
CommercialTrust
CommercialTrust 20 May 2016

With the bulk of the market controlled by large developers, profit rather than necessity determine the pace at which homes are built. There are hundreds of thousands of plots that have planning permission...

view article
Johna
Johna 20 May 2016

"Easier said than done" is what I would say. Of course, it would be more than great to have more in quality and affordability, but I do not trust talk anymore.. What is said is not what is happening.

view article
Johna
Johna 20 May 2016

in my humble opinion being fair like THE most important! I myself have had bad experience with unfair landlords... not to mention that I know how to do a proper end of tenancy cleaning since I am a fantastic...

view article
richardrawlings
richardrawlings 18 May 2016

NB - even if we doubled our commission levels in the UK, we'd still be by far the cheapest agents in the entire world.

view article
Agent_PeeBee
Agent_PeeBee 18 May 2016

Clueless. Someone needs to take these people's computers away from them so they can do no more harm than they already have.

view article
richardrawlings
richardrawlings 18 May 2016

Nonsense! The cost of selling a house nowadays has little bearing on the fees charged. Don't believe your own spin on this. Fees have spiralled down to pathetic levels in areas where weak agents have allowed...

view article
Simon Oliver
Simon Oliver 16 May 2016

The best solution is to buy a property that has built-in income generating potential: a nice house with a couple of gites in the grounds is a good start. In France, the rune of thumb is that one 2-bedroomed...

view article
WPD
WPD 12 May 2016

I suggest the answer is to have the notary system being one legal person who represents both parties. Having experienced it a couple of times in France it was a dream compared to our dysfunctional system....

view article
warren
warren 03 May 2016

It's enough to make me weep into my Pimm's :(

view article
james anderson
james anderson 03 May 2016

The sad demise of the croquet lawn...

view article

Latest Tweets