`Property rage' as prices rise

THE RISE in house prices in the second quarter of this year was the biggest since the height of the late-Eighties boom, and cases of "property rage" are becoming more common as buyers scramble for homes, according to a new report from Halifax.

The average price of properties sold was pounds 75,578, ranging from an average pounds 54,511 in Yorkshire to an average of pounds 120,242 in London, where there is an "acute shortage" of certain types of houses.

The boom in London was confirmed by the estate agency Knight Frank, which reported a rise of 13.5 per cent in central London residential property prices in the year to June, and up to 30 per cent in some areas.

Halifax said such hot spots contrasted with areas of subdued price rises in other parts of the UK, and predicted that the housing market would remain healthy, with annual increases in the 5-6 per cent range. "We see no evidence to suggest that the market is returning to an Eighties-style boom," the report concluded.

Outside London conditions are less frenetic but Halifax claims that a "sellers' market" has developed with the notable exception of the North, where property is still depressed. "It is generally felt that the current market is a sellers' market and vendors are reluctant to come to the market until they have found a property themselves," said a Halifax spokesman. "This is particularly acute in London where `property rage' is increasingly being reported - there are more buyers chasing fewer properties with the result that asking prices are often realised or even exceeded."

"Property rage" does notrefer to physical bust-ups between potential buyers, the Halifax spokesman added. "Itis a term we use to describe the fierce bidding for properties," he said. "There are no reports of people being physically abusive... There may be anecdotal evidence of verbal abuse."

A spokesman for the National Association of Estate Agents said: "We know there are not enough properties to satisfy demand and that is creating a competitive environment. There are people who are obviously desperate to get a property leading to `gazumping', when people top an offer."