London homes sell 'in under three weeks' for full asking price

Surrey Comet: In London, sellers are getting around 99.3 per cent of their asking price. In London, sellers are getting around 99.3 per cent of their asking price.

House sellers are achieving 96.2 per cent of their asking price typically, marking the highest proportion seen in a decade as buyers chase a scarce supply of homes.

In London, sellers are getting around 99.3 per cent of their asking price and across every region the figure is above 93 per cent, pointing to further price rises, the report by property analyst Hometrack found for the month of March.

Across England and Wales, the length of time properties are typically spending on the market before being snapped up has dropped to just under eight weeks for the first time since 2007.

And homes in London are taking just over two and a half weeks on average to sell.

House prices increased by 0.6 per cent month-on-month in March, which is slightly down on a 0.7 percent rise in February.

But for the second month in a row half of postcodes across the country reported rising property values.

Prices rose by 0.2 per cent in Yorkshire and Humberside and the North West, by 0.3 per cent in the West Midlands and the North East, by 0.4 per cent in the East Midlands, by 0.6 per cent in Wales, by 0.7 per cent in the South East and London and by 0.8 per cent in the South West and East Anglia.

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.

Toughened mortgage rules are set to come into force next month which will mean lenders have to make sure that people can not only afford their mortgage repayments now, but also when interest rates eventually start to rise.

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Comments (8)

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12:40pm Mon 31 Mar 14

D Hoole says...

When will this Bubble burst do you think - before or after next May's General Election?
When will this Bubble burst do you think - before or after next May's General Election? D Hoole
  • Score: 5

2:55pm Mon 31 Mar 14

DB says...

D Hoole wrote:
When will this Bubble burst do you think - before or after next May's General Election?
After. There is nothing to stop it until they put interest rates up and there seems to be zero chance of that happening before the election.

Even then if the current prediction of the base rate only reaching 3% is true, it might not make a great deal of difference anyway.
[quote][p][bold]D Hoole[/bold] wrote: When will this Bubble burst do you think - before or after next May's General Election?[/p][/quote]After. There is nothing to stop it until they put interest rates up and there seems to be zero chance of that happening before the election. Even then if the current prediction of the base rate only reaching 3% is true, it might not make a great deal of difference anyway. DB
  • Score: 5

9:50pm Mon 31 Mar 14

Michael Pantlin says...

I beg to differ the real driver of house prices is overpopulation through overbreeding and overimmigration.
I beg to differ the real driver of house prices is overpopulation through overbreeding and overimmigration. Michael Pantlin
  • Score: 0

9:52pm Mon 31 Mar 14

Michael Pantlin says...

DB wrote:
D Hoole wrote:
When will this Bubble burst do you think - before or after next May's General Election?
After. There is nothing to stop it until they put interest rates up and there seems to be zero chance of that happening before the election.

Even then if the current prediction of the base rate only reaching 3% is true, it might not make a great deal of difference anyway.
This bubble is being financed at the loss to savers of being defrauded of their savings interest income.
[quote][p][bold]DB[/bold] wrote: [quote][p][bold]D Hoole[/bold] wrote: When will this Bubble burst do you think - before or after next May's General Election?[/p][/quote]After. There is nothing to stop it until they put interest rates up and there seems to be zero chance of that happening before the election. Even then if the current prediction of the base rate only reaching 3% is true, it might not make a great deal of difference anyway.[/p][/quote]This bubble is being financed at the loss to savers of being defrauded of their savings interest income. Michael Pantlin
  • Score: 0

11:51pm Mon 31 Mar 14

Concerned_Resident says...

It's self fuelling. There's no money to be made in having traditional savings, so people look for alternative ways to invest. Property is that alternative. This creates demand, which is already very much there because of foreign 'investors' snapping up what property there is, and so the cycle continues.
It's self fuelling. There's no money to be made in having traditional savings, so people look for alternative ways to invest. Property is that alternative. This creates demand, which is already very much there because of foreign 'investors' snapping up what property there is, and so the cycle continues. Concerned_Resident
  • Score: 2

3:42pm Fri 4 Apr 14

DB says...

Michael Pantlin wrote:
I beg to differ the real driver of house prices is overpopulation through overbreeding and overimmigration.
Perhaps, but the demand can only drive up prices as long as people can afford it, and it is the 0.5% interest rates that allows them to afford it.

If a recent immigrant wants a house and the council are prepared to pay a private landlord £1,500 a month to provide one then that will definitely increase demand for property, but if interest rates went up to 5% there would be far fewer landlords who could afford to buy properties even if they wanted to.

I'd like to buy a house next to the river in Surbiton and so would many of my friends so the demand is there, but none of us can afford the £1m or so we'd need, so no transactions will take place even though we'd all like to buy one.
[quote][p][bold]Michael Pantlin[/bold] wrote: I beg to differ the real driver of house prices is overpopulation through overbreeding and overimmigration.[/p][/quote]Perhaps, but the demand can only drive up prices as long as people can afford it, and it is the 0.5% interest rates that allows them to afford it. If a recent immigrant wants a house and the council are prepared to pay a private landlord £1,500 a month to provide one then that will definitely increase demand for property, but if interest rates went up to 5% there would be far fewer landlords who could afford to buy properties even if they wanted to. I'd like to buy a house next to the river in Surbiton and so would many of my friends so the demand is there, but none of us can afford the £1m or so we'd need, so no transactions will take place even though we'd all like to buy one. DB
  • Score: 0

3:45pm Fri 4 Apr 14

DB says...

Concerned_Resident wrote:
It's self fuelling. There's no money to be made in having traditional savings, so people look for alternative ways to invest. Property is that alternative. This creates demand, which is already very much there because of foreign 'investors' snapping up what property there is, and so the cycle continues.
I agree. The current government's idea of a 'recovery' is to fuel a rise in asset prices with cheap debt to make everyone feel better off rather than creating jobs and making things which is the traditional way to 'grow' a struggling economy.

The problem is, I can't understand how we can ever get away from the stimulus with house prices so high.
[quote][p][bold]Concerned_Resident[/bold] wrote: It's self fuelling. There's no money to be made in having traditional savings, so people look for alternative ways to invest. Property is that alternative. This creates demand, which is already very much there because of foreign 'investors' snapping up what property there is, and so the cycle continues.[/p][/quote]I agree. The current government's idea of a 'recovery' is to fuel a rise in asset prices with cheap debt to make everyone feel better off rather than creating jobs and making things which is the traditional way to 'grow' a struggling economy. The problem is, I can't understand how we can ever get away from the stimulus with house prices so high. DB
  • Score: 1

9:49am Thu 17 Apr 14

sfocata says...

Precisely. The "recovery" is a lie. Pushing more people into years of reliance on credit, while food bank use (not a lifestyle choice for anyone) is at an all-time high.

The con trick of the British property boom rolls on. Just think about it... an economic development that encourages us to rejoice when the price of a basic life necessity shoots through the roof! That's not progress. I just wonder who the next Northern Rock will be.
Precisely. The "recovery" is a lie. Pushing more people into years of reliance on credit, while food bank use (not a lifestyle choice for anyone) is at an all-time high. The con trick of the British property boom rolls on. Just think about it... an economic development that encourages us to rejoice when the price of a basic life necessity shoots through the roof! That's not progress. I just wonder who the next Northern Rock will be. sfocata
  • Score: 0

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