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