"The East of England's rises far outstrip Greater London's 7.0% year-on-year rise and the South East's increase of 7.8%"
According to Home.co.uk, concerns have been raised about the sustainability of the property market in the East of England as house prices are rising there faster than anywhere else in the UK.
The property search engine's June Asking Price Index shows that the region's average asking price has risen twice as fast as the rest of the country over the last 12 months.
From June 2015 to June 2016, prices in the East of England increased by 13.9%, compared to an England and Wales average rise of 6.8% and a hike of 6.7% in Scotland over the same period.
The East of England's rises far outstrip Greater London's 7.0% year-on-year rise and the South East's increase of 7.8%.
Asking price figures for May and June 2016 provide further evidence of how the East of England has become the UK's hottest market. Over this period, the region's average asking price rose by 1.6%, while London's fell by 0.4% and prices in the South East only rose by 0.2%. Across England and Wales the latest monthly rise was 0.4%.
Properties are also selling faster in the East of England than in any other region. The Typical Time on Market (ToM) for homes in the East of England in June is 54 days, compared to 80 days across England and Wales and 62 days in London.
Lack of supply is a key factor in these regional variations in asking price. There was an 8% fall in supply of property in the East of England between May 2015 and May 2016. Over the same period, the UK-wide fall in supply was 7%. In contrast, between May 2015 and May 2016, the supply of property rose in Greater London (by 2%) and in the South East (by 1%), a key indicator as to why asking prices in those two regions are now flagging compared to the East of England.
Home.co.uk is predicting that the East and West Midlands are set to follow the East of England's rapid rate of asking price inflation, as the supply of property in each area has dropped by 13% and 14% respectively over the last year. These are the largest regional declines in property supply since May 2015.
Doug Shephard, Home.co.uk Director, said: “A cooling London market has changed the dynamic of the UK property market and is now less of a focus for property investors. The new regional champion is by far the East of England where terrific price rises look set to rival even London in its heyday.”