A shortage of properties for sale is continuing to drive house prices in the UK with the average home now only on the market for a matter of weeks. New research from Hometrack has also found that house sellers are now achieving an average of over 96 per cent of the asking price for their property, the highest proportion in ten years.
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London house sellers achieving 99 per cent of asking price
The research from Hometrack has found that the average property seller is achieving 96.2 per cent of their asking price, the highest proportion seen in a decade.
In London, sellers are getting around 99.3 per cent of their asking price. Sellers in the East Midlands are achieving 95.8 per cent of their asking price compared to 95.7 per cent in East Anglia and 95.5 per cent in Yorkshire and Humberside.
Across every region the figure is above 93 per cent, suggesting that a shortage of homes is pushing up the price that buyers are prepared to pay.
The report for the month of March also revealed that across England and Wales, the length of time properties are typically spending on the market before being purchased has fallen to just under eight weeks for the first time since 2007. Homes in London are selling even more quickly, taking on average just over two and a half weeks to sell.
Richard Donnell, director of research at Hometrack said: The real driver of higher house prices is record low mortgage rates and strong demand from first-time buyers and investors who have no property to sell,which is compounding scarcity.
With average mortgage rates currently at 3 per cent or lower, compared to over 5 per cent before the downturn, households have seen a significant boost to buying power.
Hometrack said the scale of house price increases in the coming months will depend on the willingness of existing home owners and investors to bid up the price of housing.
Mr Donnell added: The gap between supply and demand has been extended for the last five months and points to further price rises in the months ahead.