The highest price rises were mostly to be found in the northern half of the country, continuing the north – south differentiation seen throughout 2003. Prices in the North West rose by 0.5%, whilst those in the North, East Midlands, West Midlands, Yorkshire & the Humber and Wales all rose by 0.4%. By contrast, prices in the South West rose by 0.3%, those in the South East and East Anglia rose by 0.2% and prices in Greater London rose by only 0.1%. It was significant that no major region experienced price falls despite this being a seasonally quiet month.
All but two of the 52 county areas reported price rises, the highest price rises being in Cornwall (1.1%), South Yorkshire (1.1%), Hereford and Worcester (0.9%), West Midlands (0.9%) and North Wales (0.8%). The only parts of the country seeing prices fall over the month were Central London & City (-0.1%) and East Sussex (-0.1%).
Cities with the highest price rises were Bath (1.6%), Sheffield (1.3%), Salisbury (1.1%), Swansea (1.0%) and Newcastle (0.9%). No city experienced falling values this month.
The overall average price of a house has now increased to £147,200 (last month £146,800).
Hometrack’s unique National Demand Index™ shows net demand for properties remains broadly stable and positive. Average sales price achieved, as a percentage of asking price, rose to 95.2% – regaining a level not seen since February 2003 – and up from a low of 94.3% in the last June’s survey.
The average length of time taken to sell a property is 5.1 weeks. There is currently an average of 11 viewings before a sale is achieved.
John Wriglesworth, Hometrack’s Housing Economist, comments:
“The year has started positively for the housing market, with no sign that last year’s interest rises have adversely affected consumer confidence. Typical mortgage repayments, being 14% of average gross household income, are still very low by historic standards (average 21% over the last 20 years ). With banks and building societies continuing to relax their lending criteria, by allowing higher income multiples, prospective house purchasers can afford yet more expensive properties.
“The north continues to outpace the south with northern regions typically experiencing house price rises at twice the rate of the south. However, all regions are picking up. Our estate agents all over the country are reporting significant increases in new buyer interest, which we expect to feed through to yet higher monthly house price rises nationwide in the coming months.”
