Overall prices rose 1% last month taking the UK average to £212,372, according to the latest index from Sequence, owners of 300 branches of estate agents nationwide. It means prices are up 11% annually.
In London growth is even stronger with prices up 2% month on month to £457,872 and up 24% annually, the data also shows. While sales in London increased by 34% month on month.
The index report also shows that mortgage applications rose by 5% from last month, with first time buyer mortgage applications increasing by 7% since February.
‘As we enter spring the UK property market is hotting up, with double figure annual growth across every indicator,’ said David Plumtree, chief executive at Sequence.
However, he pointed out that the rate of growth has been tempered by a number of new properties coming onto the market, up 36% on month, satisfying some of the pent up demand.
‘But demand for property continues to outpace new instructions and this imbalance will underpin price rises going forward. In London the situation is even more acute as the number of new instructions coming onto the market has risen by 32% on month, but only by 16% annually and it is this shortage which has caused dramatic price rises of 24% annually,’ he explained.
‘The number of property transactions across the capital city has also risen sharply, highlighting that buyers are willing and able to pay these rising prices,’ he added.
Plumtree also pointed out that although it is good news that the number of mortgage applications are up this could slow down with the introduction of the Mortgage Market Review this weekend which introduce closer scrutiny of mortgage applicants’ spending potential. But he believes it is unlikely to impact liquidity in the long term.
But price growth does vary across the country. For example, the north east, the Midlands, East Anglia, Wales, and the south west all saw prices fall slightly month on month with Scotland and the north west leading the month on month growth.
The north west saw a 6% month on month rise in prices and they are 10% higher than a year ago, averaging £143,263. In Scotland prices jumped 4% month and month and are now 8% higher than a year ago, taking the average property price to £113,877.
Wales experienced a 2% monthly fall in prices but they are still 7% higher than a year ago taking the average price to £177,776. All other regions saw a 1% monthly fall in prices but they are all well above a year ago.
The index report also shows that across the UK both the number of viewings and the number of offers has increased substantially, by 29% and 28% respectively month on month. Plumtree said that this is a sign of a competitive and fast moving market, where buyers are taking less time to make a decision.
