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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.