Demand in the London property market significantly exceeds the supply

Property prices in the UK rose 0.5% in September, which, according to the latest index Hometrack is the highest monthly growth since may 2007. 41% of real estate markets recorded an increase in prices compared with 6 % a year ago.

Improving sentiment in the housing market, increased demand from buyers, low interest mortgage rates, reduced down payment on mortgage loans and the reduced delivery of new properties onto the market – all these factors combined led to the fact that the pressure of the market pushes housing prices up in the UK.

But if you look at the residential property market in the regions of the UK, not to mention regional differences. More than 70% of the market of London and the South East, said rising prices, while in other regions the price growth for residential property is limited to only less than one third of the market.

Many real estate markets outside of London for the first time showed an increase over the last 5 years. Experts note that prices outside London are growing very slowly and the talk of a bubble in the property market are premature.

The demand from buyers for property in the UK has been growing for more than 8 consecutive months and in September rose 1.4 %. And delivery of new facilities, in contrast, fell by 0.3% for the first time in 7 months. The steady decline of the suggestions observed particularly acute in London and the South East over the last three months, but in other regions, by contrast, an increase in supply.

Consequently, the growth in property prices recorded the strongest in regions with limited supply in London and the South East of England.

The restoration of consumer confidence in the real estate market and low volumes of supply supports higher prices. All these factors argue in favor of that of the UK property market will continue to increase prices, but the market is very sensitive to the level of demand and especially the expectations associated with mortgage rates.

® Helen Antre 30.09.2013 g.