London ‘ripple’ knocks southern house prices to fresh peak
04-15-2014
By Emma Dunkley
Foxtons Estate Agents As Owner BC Partners Mulls Sale
©Bloomberg
House prices in southern England have hit record highs, as surging London values “ripple” across parts of the country, according to the property site Rightmove.
Asking prices have reached a fresh peak in southern regions, pushing the national average price of property coming to market to the highest ever – at £262,594.
This is a 7.3 per cent rise compared with a year ago and the highest annual rate of growth since October 2007.
“Records are tumbling, with a new national asking price record being set for the second consecutive month,” said Miles Shipside, Rightmove director and housing market analyst.
“London’s asking prices are at their highest ever, and the strong ripple effect from the capital has also caused a new wave of record prices for property coming to market in the southeast, the southwest and East Anglia.”
A lack of supply in the capital and the south is pushing prices up, as demand remains strong.
Despite increases in housing supply of between 8 and 13 per cent in the south of England this year, the shortage is a “major factor” pushing up the new seller average asking price in the south by 3.5 per cent this month.
However, while the four southern regions, including Greater London, are experiencing price growth rates last seen before the financial crisis set in, property prices in the north still lag behind October 2007 levels by an average of 6 per cent.