House prices shoot up while supply falls over 10%, says haart

Estate agent haart has reported from its own figures, saying that house prices have risen 10.5% annually.

The average home sold by haart is now £224.242 – a record.

The agent also says that while demand for homes has risen, supply has fallen.

It says the number of new properties for sale is down 10.1% on a year ago.

Demand is up 6.4% annually, although it fell between September and October.

CEO Paul Smith said: UK house prices in October rose faster on a monthly and annual basis than they have since our records began, up 1.9% and 10.5% respectively.

“The surge has resulted in the average property price peaking at £224,242. This trend is the outcome of diminished stock levels which are currently at their lowest since February, meaning there are now 12 buyers chasing every property to come to market.

“The Government must take drastic action to encourage the release of homes suitable for families and prevent record high price rises in 2016 for the core of the UK property market.

“The new Help to Buy ISA should help first-time buyers save for their deposit but it is stimulating demand without addressing the underlying issue of lack of supply.

“While house prices in the rest of the UK are likely to continue their current trajectory in 2016, the top end of the market, particularly in London, will see a price correction because of the impact of stamp duty – likely to consist of a 10% drop in value for homes currently priced over £1m.

“Our data is already beginning to show London falling behind the rest of the UK in terms of growth in house prices as a result of this.”

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2 Comments

  1. Trevor Mealham

    Could supply have dried due to vendors wanting top portals and more outlets rather than a main portal and another as noticible as below man hole level.

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  2. Will

    Might it have something to do with a massive increase in population needing housing.  The problems have accelerated since the poorer eastern European countries have understandably and predictably caused significant migration to the UK? And all without a matching increase in housing supply!

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