House price growth has seen the maximum monthly rise in the month of February since May 2004, a leading property website reveals.
In its monthly survey, Hometrack revealed that house prices rose by 0.7 per cent in February in England and Wales, reaching £172,000.
In February more than 13 % more properties registered with agents, up by 14%, yet there was a 23% increase in the number of house hunters.
House prices rose by 42 per cent as a result of supply not meeting demand mainly in southern England .
Mr. Donnell of Hometrack said, "The rise was due to demand outstripping supply, a trend it predicts will push up house price growth even higher as there is 'no immediate end in sight'.
"Despite the January rate rise it seems that a lack of supply is continuing to support higher prices, primarily in London and the south-east," said Richard Donnell, Hometrack director of research.
"Below average levels of property transactions - as a proportion of overall housing stock - are also acting as a support to prices. As a result we are seeing property transactions, and pricing being set by those who can afford to move – that is to say existing owner occupiers, buy-to-let investors and the growing number of 'assisted' first time buyers ."
Mr. Donnell concluded, "In the absence of any external shock to demand and the apparent willingness by purchasers to pay what is necessary to access the market, then house prices look set to increase further over the coming months."
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House prices still on the rise
Tue, 27 Feb 2007
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