London house price boom

House prices have risen for the third month in a row as market conditions in London improved to levels not seen since 2007, according to a new property study.

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London's key house price results

The key results for the capital are:

  • House prices rose 0.7% in London in April, compared to 0.3% nationally
  • Demand has grown thee times faster than supply in the last quarter
  • In London the time on the market is almost half the national average (9.1 weeks) at just 4.6 weeks - a rate not seen since 2007
  • 95% of sellers get the asking price in London. This compares to 93% in the rest of the country
  • North London registered the largest increase in the UK; 1.3% in April
  • Prices in South West London rose by 1.1%

North and South-West London see biggest increases

Biggest price increase in North London

The supply of housing for sale is not keeping pace with demand,the survey from Hometrack found.

Richard Donnell, Director of Research, said:

"Over April agents reported just a 2.8% increase in new homes on the market. Ineach of the last three months the growth in supply has failed to keep pace with demand and this isproviding strong upward pressure on pricing.

Would-be buyers are often sellers, and survey respondents report that many potential purchasers are delaying putting property on the market until they find a home to buy. These households are also waiting for signs of a sustained housing market recovery before registering with an agent to sell.

Together thesetwo factors are boosting demand while keeping supply scarce."

The survey also found that North London (1.3%) and South West London (1.1%) registered the strongest increases over themonth.

Outside the capital the next highest levels of growth were seen in Oxfordshire and Cambridgeshire.

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Demand outstrips supply in the capital

Demand has grown three times faster than supply in London

House prices in London grew by 0.7% in April - the highest in the UK. Demand in the capital has grown three times faster than supply over the last quarter and this rise is driving the rate of growth across the country.

In London, homes are on the market for almost half the national rate, at just 4.6 weeks - and 95% of sellers are achieving their asking price; levels last seen in the summer of 2007.

In the rest of the country, prices increased by 0.3% month-on-month following a similar uplift in March.

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