Haart reports that London property prices showed an unprecedented 0% annual growth in January 2015 – but it predicted that a stock shortage will lead to a spring price hike.
However, some London postcode areas saw strong monthly growth – these were north London (up 21.2% annually) south east London (up 9.9% annually). The figures also suggested that the commutable home counties are benefiting from those buyers now moving away from London in search of affordability. West London postcodes saw the greatest annual house price dip, with property prices down 13.3%.
According to the estate agent’s own figures, UK-wide property price growth has continued on an upward trajectory, increasing 9% over the past year.
It said that 12 buyers chase each new property for sale across the UK with the figure rising to 22 in London as demand remains high.
Paul Smith, CEO of haart, said: “While property prices in London are back to January 2014 levels, this window of affordability will be short-lived as a severe stock shortage spreads pre-election. While December’s Stamp Duty reform has further stoked demand, this has not yet translated into sellers.
“This means the London market is in stalemate, with plenty of people wanting to buy but a dearth of suitable stock and this will only send prices upward again.”