Annual growth in house prices accelerated sharply in April, according to The Department for Communities and Local Government (DCLG, the ex-ODPM).
However property economists suggest that base effects were a key driving force and continue to anticipate the flatter housing market seen in other recent housing market indicators. But the future bodes well for the larger house market; with no downturn forecast for the foreseeable future, more and more buyers and sellers are entering the market.
House prices in April increased by 1% – bringing annual growth rate to 5.1% but property economists explain that the 0.8% fall of April last year accounts for this.
Meanwhile annual house price growth in London is still accelerating – from 1.5% in February to 7.1% in April. ?The acceleration in house price rises in London reflects the buoyancy of the financial and business sector in the capital,? said Milan Khatri, RICS Chief Economist, ?But if recent stock market volatility is sustained, it is likely to have some cooling impact on the market later this year?. Rises were also reported in northern England, Scotland and Northern Ireland.
The prime country house market in the south west is also flourishing, it seems. ?The market is good and strong at the moment,? commented Robin Thomas from Strutt and Parker, Exeter. ?Demand and supply have come back into balance and there is a good number of lovely houses coming to the market and some very strong cash buyers.?
According to Mr Thomas, waterside properties are particularly popular at the moment, with many selling off plan. He remains confident for coming months too: ?The market will be good for the rest of the summer,? he confirmed.