London house prices rose by 11% year-on-year in April – more than any other region - but England & Wales also saw the fastest year-on-year house price growth since December 2014 – up 8.9% annually.
In April, property values hit new records in nine of the ten regions in England and Wales, the first time nine regions have broken records in the same month since October 2007.
The average home in England and Wales is now worth £24,280 more than a year ago, and is now approaching the £300,000 mark.
Richard Sexton, director of e.surv chartered surveyors, commented:
"This acceleration in home values comes when many had expected house prices to dip due to a natural decline in demand from buy-to-let and second home buyers. However, after an exceptional March, there is now a severe shortage of properties on the market, with fierce competition between buyers for each available property. With the maximum value of the government’s flagship starter homes capped at £250,000, first-time buyers may soon see a lot less property for their money. George Osborne needs to increase incentives to sell and relax planning restrictions if he truly wants to fulfil the homeownership dreams of young people.
“These kinds of huge hikes in home values in London mean that Sadiq Khan will now face a serious challenge to deliver his promise of increased affordable housing in the city. Across London, it’s been the more affordable areas which have seen some of the steepest increases in house prices annually, as the capital’s residents seek out cheaper properties.
“Property sales have slowed in April, readjusting after the rush of interest from landlords in March. With an additional 30,000 home sales made in the previous month and buyers snapping up most of the properties on the market, the current pause in transactions was to be expected. While March saw a record 97,500 home sales – the most since November 2007 – this April there will have been an estimated 20,000 fewer sales than usually expected for the month. Many homeowners may now decide to wait until after the EU vote before selling their homes, despite significant demand from buyers, so we could see this shortfall continue until June.”
