House prices increased 0.6% in April as regional housing markets picked up momentum in price growth, Hometrack has reported.
London continues to register above average growth (0.8%), driven by the lower value markets. However, there are signs of growing price resistance on the part of buyers in London, which could check the rate of house price appreciation in the coming months.
The time to sell has increased from 2.7 to 3.4 weeks and there are declines in the proportion of areas registering higher prices compared to the second half of 2013.
Nationally, demand for housing continues to increase, rising by 3.3%. New supply continues to grow at a slower rate than demand, rising by 1.9% over the month. This is sustaining an extended supply/demand imbalance that has been in place for the last six months.
Market conditions continue to strengthen in the regions outside London. 48% of postcodes registered higher prices in April – three times higher than the level a year ago and the highest for a decade.
Richard Donnell director of research at Hometrack, said: “House prices increased by 0.6% in April, unchanged over the month. Demand (up 3.3%) continues to grow faster than supply (up 1.9%) maintaining the supply/demand imbalance that underpins the upward pressure on house prices. London continues to register above average growth (0.8%) but market conditions continue to strengthen in the regions outside London, particularly southern England.
“Nationally, the average time on the market is down to 6.3 weeks, the lowest since June 2007. While the outlook is for further price increases there are emerging signs of growing price resistance in London which could check the rate of house price appreciation in the coming months.
“The continued improvement in market conditions across the wider housing market is demonstrated by prices increasing across 48% of postcodes outside London over April – this is the highest coverage of price rises for a decade (June 2004) and is three times higher than the level seen a year ago (16%). The pick-up in the coverage of price rises is very clear cut after six years of falling then static prices.”
