Hometrack the online valuation company, claims house prices are 10% higher in London than they were at the peak of the market. However, the new research claims that overall prices have fallen across two thirds of the country. They predict a national fall in prices of 1% in 2013.
The overall decline across 66% of the country is despite 1 in 5 postcodes seeing increased prices this year, up from 12% the year before.
The net effect means that average house prices have ended 2012 a fraction lower or 0.3% below 2011 prices. This still compares favourably when compared to the same period a year ago, when falls had been 2.3%. The concern for market pundits is that December has been the 6th consecutive month of falling prices and a downward trend may be starting to take hold as consumers more alert to the Government’s austerity measures and state of the general economy.
The situation looks less bleak in the capital where 70% of postcodes saw an increase in 2012.
This compares with only 42% in 2011. The average time a London property is on the market is now only six weeks compared to six and half week a year ago. The London market continues to consistently out-perform the rest of the market as demand remains strong from overseas buyers such as foreign nationals seeking mortgages for non residents and UK ex-pats returning home.
It seems that prices in the UK’s capital are now 10% higher than they were at the peak of the market and the success of the London market will have an important impact on general price growth next year.