UK Housing Rise Expands to Outside London Area

House prices in the U.K. saw strong gains in April, with prices outside of the capital rising more than at any other time in the last decade, a new survey showed.

British house prices increased by 0.6 percent in April this year, and while London continues to post above average growth with of 0.8 percent, signs of resistance show prices in the city could start to ease in coming months, according to residential property analysts Hometrack.

Some 48 percent of postcodes in the country outside of London saw property price gains in April – the highest coverage of price rises seen since June 2004, and three time higher than the level seen a year ago.

Demand still outstrips supply and nationally the time houses spend on the market has fallen to 6.3 weeks – the lowest since June 2007.

“The latest survey reveals early signs of growing price resistance in the London market in the face of recent, rapid increases in residential values,” said Richard Donnell, director of research at Hometrack.

Richard O’Donnell said London houses spent more time on the market in April, with sales taking longer to close and the proportion of markets in the capital registering price gains each month is starting to soften.

“Two thirds of London postcodes registered a price gain in April compared to an average of 76 percent over the final 6 months of 2013,” said Donnell.

via CNBC

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