The buoyancy seen in the housing market of London and the South East is spreading to other parts of the country, with a 0.7% price increase seen across half of England and Wales.
The new data, from property researchers Hometrack, reveals the most impressive price-growth figures in a decade. 51 per cent of postcodes saw price rises in February, the largest proportion since 2004.
As momentum in the capital has increased, house prices across England and Wales have risen too. Analysts say that market sentiment has improved substantially over the last 12 months.
Prices in London show no sign of slowing, where a 1.1 per cent month-on-month increase was seen. The South East experienced a rise of 0.9 per cent.
Property services firm LSL also revealed housing market data recently which highlighted the effect of first time buyers on the sector. The number of first time buyers in January increased by over 30 per cent year-on-year, and were a significant factor in pushing up first home prices by 16 per cent over the preceding 12 months.
As prices across England and Wales show substantial price gains, some voices continue to urge caution, warning that the sector could overheat. The government’s Help to Buy is frequently cited as a key reason for price rises and the risk of a housing bubble developing.
The government asserts that there is no risk of the property market overheating.
Perhaps you’re one of our landlords or unoccupied property insurance customers with a property for sale. Have you experienced increased interest in the last 12 months, or have you completed a sale? As ever, let us know your thoughts below.