27 February 07 No immediate end in sight for house price rises as supply looks set to tighten further
House prices grew by 0.7% in February driven by the continuing supply/demand mismatch. This represents the highest monthly increase in prices since May 2004, bringing the annual rate of growth to +6.4%.
Demand continues to outstrip supply...
Over February the number of properties being registered with agents grew by 14% yet there was a 23% increase in the number of buyers looking to purchase. The net result of this has been higher house prices across 42% of the country with two thirds of the price rises concentrated in the South of England.
But not across the entire country...
But while house prices in London and the South East have risen by 1.3% and 0.9% respectively, growth across the rest of the country remains far more subdued. Average prices grew by just 0.1% in the East Midlands, Yorkshire and Humberside and Wales, while selling time in these regions remains above average at 7+ weeks, compared to just 2.5% in London.
| Headline statistics | Feb-07 |
| Weighted Overall Average Price | £172,000 |
| Weighted Overall Average Price Change | 0.7% |
| Change in number of new properties listed | 13.8% |
| Change in no. of sales agreed | 35.5% |
| Sales price as a % of asking price | 95.6% |
| Change in number of new buyers registered | 22.8% |
| Time taken to sell (weeks) | 6.3 |
| Average number of viewings per sale | 10.8 |