A property in London now costs around 100% more than other major towns and cities in the UK. While the gap has always been fairly wide, building society nationwide claim this is the widest bridge since property data was first collected in the 1970s. The difference between the average home in London and outside the capital is now around £180,000. The average gap over the years has been around 40%.
Nationwide also claims that prices in London are around 18% over the beginning of 2013. This is around twice the level of other towns and cities in Britain.
The lack of housing in London, is causing buyers to become more and more desperate, and in the event of property comes on the open market and an open house day is held, the attendances after staggering with the house filled to the brim. Many would-be buyers are offering sealed bids and gazumping is a real problem for those looking for a no fuss sale.
Due to the lack of properties, buyers are now paying the highest number of asking prices in more than a decade. In fact, 99% of sellers are achieving their asking price, due to the incredible demand for housing from foreign investors and locals in the city wanting to purchase.
It is estimated that the South of England will have a shortfall of over 150,000 homes by the year 2018. Local authorities are not meeting the demands of a population that is expanding at an almost alarming rate.
This difference between supply and demand has led to properties being on the market for a very, very short time, well under eight weeks in most areas.
Not all areas are seeing such a high demand – Yorkshire, the East Midlands and Humberside, our experience of price growth of under 2%.
The trend does not show any sign of slowing down and outs. It is realistically impossible to expect more properties to be built in the capital, the overspill from London, is expected to reach further and further afield, with towns like Brighton, Cambridge and Reading also experiencing an increase in property demand.