The severe housing shortage is pushing property prices up in the UK

The growth in property prices in London is the driver of price growth in all the southern regions of the UK, showing the new price records. However, the Northern regions of the UK are far behind the rest of the UK.

These are the latest figures the UK’s largest property portal Rightmove.

In the UK the asking price of residential properties rose 7.3% yoy, the highest figure since 2007. The national average price level in March totaled 262594, which is 2.6% above the previous month.

On the other hand, in the Northern part of the UK now average property prices 6% lower than in October 2007, which clearly indicates the widening gap between the North and the South.

The report also shows that the number of residential properties placed on the market, up 13% in 2014 , but the lack of supply remains a breeding ground for the growth of prices in the South of the country.

In absolute terms the average asking price of a property in London rose by £ 168 711 in the six and a half years, at the same time, the average asking price of residential property in the North during the same period fell by £10653 pound, and in the North-West increased by £16049 .

The North does not feel so sharp severe shortage of real estate. In five of the six regions, the supply increased by 18% compared to 2013. In the southern regions where the shortage of new housing is particularly notable the number of new housing supplied to the market increased from 8% to 13%, which certainly will be a factor pushing prices up. In some regions with direct access to London where the demand for residential properties is very high and the supply is ridiculously insignificant, sellers artificially inflate prices, while testing new heights and adding to the deficit.

In late April, in connection with the introduction of stress tests for mortgage lending, is expected a slight reduction of pressure on the market from buyers, however, this problem is rather time – the period of consideration of applications for mortgage loans will be increased after new tests are introduced and mastered, the volume of mortgage lending will be restored and the pressure will increase.

® Alice Morgan 15.04.2014 g.

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