Soaring prices ripple out from London
House price inflation in England and Wales has grown to its highest level for almost four years, figures out today show.
Average house prices grew by 0.8% in March - up from 0.7% the previous month, according to Hometrack's latest survey, pushing the annual rate of inflation up to 6.7% - the highest year-on-year growth since June 2003.
The report also suggests London prices are increasingly "disconnected" from the rest of the country and causing a ripple effect by driving up prices in the commuter belt.
Richard Donnell, Hometrack's director of research, said, "The headline figures continue to be distorted by a robust London housing market that appears largely disconnected from the rest of the country where the impetus for price growth is far more subdued."
The firm’s monthly survey shows that average house prices in London grew by 1.8% over March, the largest monthly increase in the capital for over four years. A lack of housing for sale combined with strong competition from buyers resulted in average prices rising across more than 80% of postcodes during March.
Over March the highest increases in average values were seen in Sutton (3.5%), Merton (3%) and Brent (2.4%) compared to 1.6% in Westminster.
The strength of house price growth in London is also having a clear knock on effect on the suburbs around the capital. Average house price growth was 0.8% in both East Anglia and the South East over March. The strongest growth was seen in Berkshire, Kent, Suffolk, Buckinghamshire, Hertfordshire and Surrey which all saw above average growth.
Away from the markets influenced by the London economy, house prices remain largely subdued. House price growth across the remaining seven regions of the country ranged from between 0% in Wales to 0.3% in the South West.
House price inflation in England and Wales has grown to its highest level for almost four years, figures out today show.
Average house prices grew by 0.8% in March - up from 0.7% the previous month, according to Hometrack's latest survey, pushing the annual rate of inflation up to 6.7% - the highest year-on-year growth since June 2003.
The report also suggests London prices are increasingly "disconnected" from the rest of the country and causing a ripple effect by driving up prices in the commuter belt.
Richard Donnell, Hometrack's director of research, said, "The headline figures continue to be distorted by a robust London housing market that appears largely disconnected from the rest of the country where the impetus for price growth is far more subdued."
The firm’s monthly survey shows that average house prices in London grew by 1.8% over March, the largest monthly increase in the capital for over four years. A lack of housing for sale combined with strong competition from buyers resulted in average prices rising across more than 80% of postcodes during March.
Over March the highest increases in average values were seen in Sutton (3.5%), Merton (3%) and Brent (2.4%) compared to 1.6% in Westminster.
The strength of house price growth in London is also having a clear knock on effect on the suburbs around the capital. Average house price growth was 0.8% in both East Anglia and the South East over March. The strongest growth was seen in Berkshire, Kent, Suffolk, Buckinghamshire, Hertfordshire and Surrey which all saw above average growth.
Away from the markets influenced by the London economy, house prices remain largely subdued. House price growth across the remaining seven regions of the country ranged from between 0% in Wales to 0.3% in the South West.
posted by tony at 3:20 PM
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