According to e.surv, demand from landlords and second-home buyers have contributed to the surge in homes sales, which rose 12% month-on-month.
The East of England is seeing the fastest growing property prices of all regions, with a 7.2% uplift in the last twelve months.
Richard Sexton, director of e.surv chartered surveyors, commented:
“February’s house price growth is fantastic news for homeowners, particularly those considering cashing in on the additional demand and making the most of this sellers’ market. Typical property values are now £16,866 (6.2%) higher year-on-year; the fastest annual growth rate seen in eleven months, driven by the gulf in the number of aspiring home buyers, compared to the limited supply of homes for sale.
“In London, house prices have climbed 6.8% year-on-year, to reach £582,783. This rapid escalation means that the typical home in the capital is now worth £36,903 more than twelve months ago, exceeding the Londoner’s median gross annual earnings of £35,333. Despite the upswing in the capital’s overall property values, sales have slipped 4.6% in the three months November 2015 – January 2016, compared to the same three months one year earlier. This is largely due to a lack of homes for sale combined with more caution at the top of the market, rather than a general decline in demand.
“In fact due to the impending stamp duty hike, home sales have surged in February across England and Wales as a whole, with total home sales up 9.3% compared to the same month last year. The biggest boost in property purchases of any region has been in Poole, with a 21% upswing in sales. Luxury flats with views over Poole Harbour and Sandbanks have seen the biggest growth, as wealthy buyers seek to avoid the additional stamp duty surcharge which will apply to second-homes, as well as buy-to-lets. Property prices have also risen as a result, up 11.6% over the year, as affluent buyers place a premium on luxury homes by the sea.”
