Demand has grown at its fastest rate in three years while the supply of new homes grew at the lowest rate recorded level in the 12-year history of the survey.
Demand is expected to continued to roll into 2014 as consumer demand coupled with the scarcity of homes and the fact that mortgage rates are at their lowest recorded in history, play a significant roll in the recent hike in house prices
The launch of ‘Help to Buy’ was a clear signal by the Government to support the housing market which again assisted in the sustained increase in buyer numbers, particularly during the second half of 2013.
Leading the way was London and the South East of England where the average annual house price rose by 9.1 per cent and 5.0% per cent respectively.
Only the North of England saw prices fall, down 0.5 per cent, while Yorkshire and Humberside with growth a just 0.4 per cent and North West at 0.5 per cent fell well beneath the national average.
Overall the growth is anticipated to continue into 2014 with a rise in demand and general lack of supply. It is anticipated that the strongest market conditions for price inflation is still set to continue largely in southern England in 2014. It’s expected that a broader based recovery will be dependent on growth in real economy and job creation and an improvement in household incomes.