April 2014 House Price Watch Report

This month's House Price Watch indicates house prices are up on average 1% in the past month and up on average 6.9% in the past year

Housing market gathers pace with largest monthly rise in 15 months

• Reports indicate property transactions are continuing to rise and are estimated to be up 30% year on year according to Land Registry data.  LSL estimates transactions are up 49% in Jan/ Feb 2013 vs Jan/ Feb 2012.
• According to recent CML data, housing demand growth in 2013 has come primarily from first-time buyers (up 23% compared to 2012), buy-to-let landlords (up 19%) and home movers (up 3%). As CML figures do not include cash sales (the home movers segment is likely under represented as downsizers may  not be captured).
• Demand for housing is still running at a higher rate than supply (demand grew by 6.6% in March with supply up 1.9% according to Hometrack). Rightmove indicates new properties are up 3.4% on last month.
• With a shortage of supply, the proportion of properties achieving the asking price is at its highest for a decade – 96% nationally and over 99% in London (according to Hometrack).

 House prices are up in all regions but the North East this month

• Price rises are spreading across the country – significant house price rises have been evident for some time in the South and East and now extend to the Midlands.
• House prices in London are soaring, up 13.8% over the past 12 months; the average home now costs over £450,000.
• The North East is the only region to have experienced declining house prices; the average house price is below £125,000.

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