House prices rose by 0.6 per cent in April, according to the latest survey from Hometrack, the housing information and data company. This is the highest monthly rise for almost two years, driven by values rising across 36 per cent of the country, primarily in London and the South East. House prices remained unchanged across 60 per cent of the country over April and there are some early signs that levels of market activity may start slow in the run-up to the summer. The national average house price now stands at £163,500.
‘These results show a clear and ongoing North-South divide in the performance of the housing market,’ comments Richard Donnell, Hometrack’s director of research. ‘London continues to be the engine for national house price growth, with values in the capital moving 1.2 per cent higher over the month and by over three per cent over the last quarter. In contrast, growth in the regions away from the South of England has totalled less than 0.5 per cent over the last three months,’ he adds.
The strong performance by London is down to an ongoing imbalance between supply and demand. The Hometrack index shows the supply of homes for sale has grown by 14 per cent over the last quarter, while demand has grown in excess of 50 per cent. Furthermore, the growth that started in the prime areas of London is showing signs of spreading out across the rest of the capital. In most other regions, the differentials between supply and demand are less stark and price growth has been far more modest.