30 Apr House prices rise for second month in a row

House prices were up for the second month in a row in April, according to property website Hometrack. Overall, prices rose 0.1 per cent in the month compared with a more robust 0.2 per cent increase in March. The rise comes despite the end of the stamp-duty holiday and the wet spring weather. Overall, demand among buyers was higher, up 25 per cent over the last three months. But there are signs this is slowing with new buyer registrations up just 2.1 per cent in April as opposed to 4.4 per cent in March.

At 0.3%, London saw the biggest increase in prices, followed by the South East and West and East Anglia with price rises of 0.1%. Elsewhere prices were either static or falling, with the North East and North West reporting the largest decline of 0.2%.

The recent price rises are a result of higher demand, explained Hometrack. However, Richard Donnell, director of research at Hometrack, warned that impact of these short-term drivers of demand is now starting to dissipate, with new buyer registrations in April down by half compared with March.

Supply, on the other hand, is rising, with the number of new properties coming onto the market up 4.8% compared with a 3.6% increase in March. Not only are asking prices higher in London and the South East but homes are selling quicker. Hometrack said it is taking just six weeks for a property to sell in the capital but further north and west the time doubles.

‘If April’s slowdown in demand and rising supply continues over the coming months, we will begin to see a reduction in the upward pressure on price,’ said Donnell. Meanwhile, the actual price properties are selling for as opposed to asking price has been increasing marginally so far this year. “The proportion of the asking price achieved has moved up to 93.1 per cent. This would indicate some recovery of prices,” Mr Donnell added.