The latest data from Sequence, owners of 300 estate agent branches including Barnard Marcus, William H Brown and Fox & Sons, shows that London demand relentless and the number of new buyers has surge 58% in the last year.
The data also shows that UK house prices rose 7% annually, and 3% in July 2013, to £205,006, the highest they have been since 2005. In London average property prices were up 5% in a single month to £396,769 after a slight seasonal dip.
As well as more demand in London, there has also been a general rise in buyers with new buyer registrations up 22% annually and 2% in July. New buyer registrations in London increased more than three times faster than the rate of new properties coming onto the market.
Mortgage applications are also continuing to rise, up 29% annually and first time buyer applications were up 34% annually.
‘August has recorded a number of firsts as the recovery of the housing market across the UK continues unabated, underpinned by the ever strengthening availability of mortgage finance and applications are up 29% annually, ‘said David Plumtree, chief executive at Sequence.
‘While the weather has finally turned, we anticipate increasing demand in September, which is a key post holiday decision making period for many and this will positively impact on prices unless supply improves. We have already seen the early evidence of this in London as average house prices have leapt an astonishing £18,573 in one month alone,’ he pointed out.
‘The supply of new homes coming onto the market continues to be out paced by new buyer registrations. Indeed, in London buyer registrations are rising more than three times quicker than supply,’ he explained.
‘House builders can’t build properties quickly enough and buyers are snapping them up quickly recognising the finite resource. This will keep prices rising, which are now at their highest point since 2005, having smashed the £200,000 barrier last month,’ he added.
