| House prices increased with 0.4% within | | | | Hometrack's Director of Research, Richard |
| October in London. | | | | Donnell is of the opinion that "A flood of |
| | | | potentially over-priced properties coming to |
| The latest survey from Hometrack reveals that | | | | the market would certainly put an end to the |
| this year the growth of prices for houses was | | | | recent level of price rises." |
| the highest in two years time. Due to the | | | | |
| annual increase of prices which was of 4.9%, | | | | More over, the situation outside London is |
| an average house in UK costs now | | | | extremely different. The strongest price |
| approximately £168,600. | | | | rises in the country were just a little bit |
| | | | over half of the level of London. Therefore, |
| But the engine of this constant house price | | | | the South East registered a rise of 0.5%, |
| rise is in fact the Capital of England which | | | | while South East reached only the level of |
| is dealing with an imbalance between the | | | | 0.2%. In other regions such as North West, |
| demand and the supply. Because of this, the | | | | Wales, West Midlands, Yorkshire and lots of |
| year was marked with a 9.9% increase of the | | | | others, the rise was almost inexistent, |
| prices and October only recorded a rise of | | | | recorded at only 0.1%. |
| 0.9%. | | | | |
| | | | Richard Donnell explains the phenomenon: |
| Even so, there are strong clues which permit | | | | "Pricing levels are going through a prolonged |
| us to believe that the trend of the market is | | | | period of re-adjustment in the wake of strong |
| going to slow down. For example, the average | | | | growth which took place between 2000 and |
| time needed in order for a property to be | | | | 2004." He also added that "Judging by how |
| sold is somewhere around 3 - 4 weeks and | | | | long it took the London market to adjust |
| these figures were registered three months | | | | between 2001 and 2005 this is a trend that |
| ago also. Further more, the proportion of the | | | | may well last into 2007." |
| house price rising has been decreasing lately | | | | |
| and specialists warn that the population has | | | | In the predictions of the representative of |
| to be realistic with respect to the future | | | | Hometrack, the year is most likely to end |
| prices growth. | | | | with a 5% average growth of the house prices |
| | | | and about 12% growth for London. |