Drop in supply fuels house price growth - Mortgages - News - Moneyfacts


Drop in supply fuels house price growth

Drop in supply fuels house price growth

Category: Mortgages

Updated: 29/05/2013
First Published: 29/05/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The price of a typical home in England and Wales has grown by 0.4% so far this month, the largest monthly increase for six years, according to the latest Housing Market Survey by Hometrack.

The overall increase in house prices was caused, largely, by homes in London and the South East of England rising by 0.9% and 0.5% respectively, although the low number of homes being placed on the market also pushed up prices during the first three weeks of May.

Despite fewer homes entering the market, demand from prospective buyers has remained strong, highlighted by the fact that a typical home now takes an average of just 8.8 weeks to sell; the shortest timescale seen since July 2010.

Richard O'Donnell, director of research at Hometrack, said: "High moving costs, uncertainty over the outlook for jobs and a lack of available housing to move to, means homeowners remain unwilling to put their own properties on the market. This is only serving to limit supply further.

"Talk of improving market conditions is likely to result in more marginal sellers entering the market in the coming months. The danger is that the pressure to secure instructions will lead to properties being put on the market at unrealistically high prices," he warned.

What next?

Search all mortgages
Mortgage repayment calculator

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!