House price rises remain static in north of England

According to the mortgage analyst’s monthly national house price survey, there is a widening gap between supply and demand, contributing to further house price rises in the capital, although it is more subdued for the rest of the country.

The data showed London and the South East saw the highest rate of growth with prices up 0.8 per cent and 0.7 per cent respectively from September.

Across other regions, prices grew at a below-average rate, with the exception of the North where prices remain static.

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Richard Donnell, director of research for Hometrack, said: “Levels of demand have grown by 3 per cent in the past two months. Improving confidence among buyers has been fuelled by low mortgage rates and positive news on a recovering housing market.”

Mr Donnell added: “In contrast, the supply of homes for sale fell by 1.6 per cent in October following a 0.3 per cent decline in September.”

He said: “The net result of the growing scarcity has been achieved prices getting closer to asking prices, where the proportion of the asking price being achieved has jumped to 95.2 per cent, close to its all-time high of 95.7 per cent in June 2007.”

This followed data from the Council of Mortgage Lenders, which showed that gross mortgage lending for the third quarter of 2013 was an estimated £49.3bn, which is the highest lending amount by quarter since the same period in 2008.

Hometrack house price indicators

East Anglia 0.3%

East Midlands 0.1%

Greater London 0.8%

North East 0.0%

North West 0.1%

South East 0.7%

South West 0.4%

Wales 0.2%

West Midlands 0.3%

Yorks. & Humberside 0.2%

National Average: 0.5%

Claire Walsh, IFA for East Sussex-based Pavilion Financial Planning, said: “These are all signs that the government isn’t doing enough to address the problems of lack of supply in the housing stock. Recent government initiatives to help first-time buyers get mortgages are all well and good, but unfortunately there aren’t enough properties around.”