Monthly increase in house prices is highest for six years
House prices have posted their highest increase in a single month for six years in May, with valuations driven up by London and the South East.
The capital enjoyed a 0.9 per cent increase in prices while the rest of the South East saw home values rise by 0.5 per cent, according to figures from property analysts Hometrack.
Prices across the rest of the country averaged a 0.1 per cent rise, taking the national average to a 0.4 per cent increase – the highest monthly jump since May 2007.
In London, the rise in prices was driven by the gap between supply and demand widening to its largest since Spring 2009.
According to the data, demand over the last six months grew 15 per cent while supply edged down 0.6 per cent. Demand also rose ahead of supply in the rest of the country, although not to the same extent.
Analysis by Hometrack suggested that the high cost of moving, uncertainty over jobs and a lack of available housing to move to had left homeowners unwilling to put their own properties on the market, squeezing supply.
Hometrack's Richard Donnell said: "The impetus for rising house prices is originating almost exclusively from London and the South East. Elsewhere, housing market conditions are improving gradually."
Separate figures also out today suggested a future surge in sales as the number of buy-to-let mortgage applications has risen by 11 per cent since March.
Sequence, the firm behind estate agents Barnard Marcus, William H Brown and Fox & Sons, said buy-to-let landlords were enjoying "perfect conditions", with applications rising 26 per cent from a year ago. Meanwhile, the number of new rental properties coming onto the market in the UK this year is already 27 per cent higher than the same time a year earlier, "which has eased pressure on rents to rise", according to Stephen Nation, head of lettings at Sequence.
He added: "The number of new tenancies agreed is on course to reach a two-year high by the end of the summer (up 19 per cent annually), which signifies a more permanent shift of tenants to the rental market."
- 1 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
18th century sex toy found in 'toilet of sword fighting school' in Poland
'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...