House prices: London now 'far ahead of the curve'

Average first-time buyer deposit has fallen 10 per cent since last year

Latest figures from the Land Registry show that May house prices in London were 18.5 per cent higher than May 2013, compared to 0.9 per cent in the North East while prices fell month on month in Yorkshire & The Humber region by 0.9 per cent.

Overall, May house prices rose 0.4 per cent compared to last month and were up 6.7 per cent over the same time last year, making the average house price in England and Wales £172,035 (the November 2007 peak was £181,518)

"The London market powers onwards  with double-digit growth," said Nicholas Ayre, managing director of buying agency Home Fusion. "But agents suggest that sentiment is changing as buyers are taking more time to consider a purchase before taking the plunge.

"Mark Carney has made it clear that interest rates will go up sooner rather than later so buyers are rightly asking whether they can they afford the property now and also in a year's time when rates could be higher. Even a 0.25 percentage point rise will make a difference."

The official figures come as a report by LSL Property Services shows that first-time buyer deposits have fallen by 10 per cent in the last year to £24,637 in May 2014, with first-timers in London paying £65,989.

Brian Murphy, Head of Lending at Mortgage Advice Bureau said London house prices were 'far ahead of the curve'.

"No other region across England and Wales is even approaching double-digit growth," he said. "Prices appear stable across much of the Midlands and the North which will give renewed hope to first time buyers that buying property is still a realistic ambition. Many of the sales using Help to Buy equity loans and mortgage guarantees have been focused in these regions, allowing better access to mortgage finance without pushing house prices further out of reach.

"London remains a unique case in need of special measures and Londoners will be the first to see the effect of moves by the Bank of England to ration high loan to income mortgages."

The Land Registry report also shows that during March 2014 the number of completed house sales in England and Wales increased by 16 per cent to 63,587 compared with 54,708 in March 2013.

Also, the number of properties sold for over £1 million in March 2014 increased by 28 per cent to 840 from 657 in March 2013.

Campbell Robb, Shelter’s chief executive, said: "Yet another rise in house prices means that even more people across the country will watch their dream of owning a home slip out of reach, however hard they work or save.

"Our research shows that an alarming 80% of homes for sale in England are unaffordable for first-time buyers on average incomes. This means that millions are being left with no choice but to remain in their childhood bedrooms or bring up children in unstable and expensive rented homes."

Discover more property articles at Homes and Property
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Telesales / Telemarketing Executive - OTE £30k / £35k plus

£18000 - £35000 per annum: Recruitment Genius: This company specialises provid...

Austen Lloyd: Commercial Property Solicitor - Exeter

Excellent Salary: Austen Lloyd: EXETER - A great new opportunity with real pot...

Austen Lloyd: Senior Private Client Solicitor - Exeter

Excellent Salary: Austen Lloyd: EXETER - An outstanding senior opportunity for...

Sauce Recruitment: Retail Planning Manager - Home Entertainment UK

salary equal to £40K pro-rata: Sauce Recruitment: Are you available to start a...

Day In a Page

HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review
A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

Inside the mansion of Germany's 'Bishop of Bling'

A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower