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UK and London Property Prices Hit Record Highs

By +Eric Jafari

UK And London Property Prices Hit Record HighsProperty prices broke records as they exceeded previous highs across the UK.

Rightmove's latest House Price Index report has revealed property prices are on the rise across the UK.

The survey reported the fifth consecutive monthly rise to bring the national average property price to £249,841. This is more than the previous high set in June 2012, suggesting house prices continue to move in the right direction.

Indeed, figures show that prices are now 9.1 per cent (£20,852) higher year-to-date which is the strongest price start for a year since 2004.

Looking regionally, London, the South East and East Anglia have all also had a record breaking month, with average house prices exceeding previous all time highs.

For the first time property in London has an average price over £500,000 following a 3.1 per cent monthly rise. Buyers should now expect to pay double what they would nationally for the typical property in London.

"The tumbling of records is being driven by the equity-rich older generation and has a definite southern bias. However, despite a new national record, it's not 'green-shoots of recovery' across the board, especially for those without access to a significant deposit," Miles Shipside, Rightmove director and housing market analyst said.

"They must wait patiently until January when the Help to Buy scheme extends to the resale market - unless new homes developers can increase building dramatically in the coming months."

Although prices rose across the country on average, Yorkshire and Humberside and the East Midlands are still showing negative price growth year-on-year. But it is possible there is some potential for that to turn around as both regions showed a 1.2 per cent rise in average price compared to last month.

Rightmove also reported record traffic, up by 35 per cent year-on-year in April 2013. It is likely that choosier buyers and a dearth of choice in some areas caused consumers to click through a record 1.25 billion pages last month.

"For those now in a position to buy, the recession appears to have precipitated a change in buyer behaviour which has left them more choosy and less likely to settle for second-best. Not only are they looking for value and being mindful of paying over the odds, prospective buyers are giving thought to ease of resale, a sign that the pain of this financial crisis has left them much more mindful of the future liquidity of their assets," Mr Shipside added.

21 May 2013

Tags

house price index,property in London