House prices look set to rise further

Buyers that are keen to buy a home are continued to push house prices up in March. Houses and flats are now on the market for the shortest time since 2008 as buyers hoover up whatever becomes available. Buyers are also paying more than 99% of asking prices and in some areas estate agents are using a sealed bid process to agree sales.

This normally happens when there are several buyers that want to buy the same property and is an indication that properties are selling for well in excess of their asking prices and is not a healthy sign for the property market as the next house that comes onto the market in that area will have an inflated price. The data comes as there was a further warning that there would also be a housing shortage of 160,000 homes by 2018.

According to a report carried out by Savilles local authorities are still not approving applications for new homes and are not planning enough social housing to meet the needs of local people. Analysis carried out by Hometrack showed that house prices rose by 0.6% in March but the number of buyers grew by just under 7% which means there is a good chance that prices may increase further over the coming months.

There was some good news for buyers as the number of new homes coming to the market increased by just under 2%. Further evidence also suggested that the Help To Buy Scheme was not responsible for house price inflation as the average purchase price using the scheme was under £200,000 and most of the completed sales are outside of the south-east of England.