However, with the exception of Central and East London, and Wiltshire, prices continued to rise across all counties. House prices have risen by 13.3% since the beginning of 2002 and look set to rise by 15% this year (December on December), according to the survey.
hometrack’s Housing Demand Index continues to show excess demand but the gap is closing. Although there was a 0.2% increase in the number of active buyers (demand), the number of new properties registered (supply) rose by 3.6%. The survey says it expects further price rises across most parts of the country.
Regions other than London and the Home Counties continued to experience the strongest price increases. Teesside (1.5%) stays at the top for the second month followed by Nottinghamshire (1.3%), Devon (1.2%) and Oxfordshire (1.2%). Central and City of London (–0.2%) and Wiltshire (-0.1%) experienced falls and there was no change in East London.
John Wriglesworth, hometrack’s housing economist, commented: “While the housing market is slowing down to more sustainable rates of inflation, prices are still rising by over three times the average rate of retail price inflation. Continuing low mortgage rates, rising incomes and restricted supply in certain areas point to more house price rises to come. We are predicting 15% price rises for this year (December on December) and 8% for 2003 - still a booming market. I am confident that there will be no nineties style housing market recession.”
