The prospect of a UK housing market in recovery have been put into doubt by the fact that average house price gains seen over the last month seem to be concentrated in LONDON and the South East of England. The month on month average house price increase is also being put down to lack of confidence from house sellers who are refusing to put their homes on the market. The lack of inventory is now driving house prices up.
The UK’s second largest city Birmingham is a good example of how the South East is managing to skew average house price in the UK. The midlands housing market is actually showing house price decreases and average house prices of £139,146 whilst UK average is £224,064 see property for sale Birmingham
Hometrack who provide Automated Property Valuations and property market Information for lenders, mortgage brokers, local government and surveyors comment that overall house price rises are being skewed by London, East Anglia and the South-east In fact three-quarters of all growth accounted for were from London and the South-east alone. In the capital, prices climbed by 0.3 per cent in August, after four months that have seen a 2.6 per cent fall in homes for sale and a massive 34 per cent rise in demand. Similarly, the number of houses on the market dropped by 5 per cent in the South-east.