Month-on-month house prices have risen nationally by 0.3% in March, boosted by impressive growth in London’s property market.
The figures were released by property analyst Hometrack, which found that prices in the capital rose by 0.7% month-on-month – the biggest increase since February of 2010.
Part of the reason for the uplift is the unfolding economic crisis in Cyprus and the eurozone; London is considered a safe haven resulting in increasing sums of cash being diverted to the UK capital.
Director of research at Hometrack, Richard Donnell, said the Cyprus crisis would “only serve to further boost the flow of international funds into the capital”.
Many of those buying property in London are from overseas, and are often purchasing property as a safe investment rather than to live in.
Around 60% of London postcodes enjoyed price increases in March, says the Hometrack report. It also found that houses take just 5 weeks to sell – the briefest period since October of 2007, just before the financial crisis took hold.
The Hometrack report suggests that Government moves to get the housing market moving again are beginning to work. Mortgage lenders and estate agents have reported increases in activity, boosted by improved mortgage availability and attractive loan rates resulting from the new Funding for Lending Scheme (FLS), unveiled by the Government.
Many of our unoccupied property insurance customers waiting for their properties to sell will be encouraged by these real signs that the housing market is becoming unblocked.