London property prices saw the biggest monthly increase as October saw house sellers hike their asking prices by more than £8,000, the highest in eight months, according to latest property market figures.
London property prices saw the largest increases partly aided by strong overseas buyer interest, with a 4.8% boost taking average prices to £478,071. The typical property asking price increased by 3.5% month-on-month to £243,168, as all regions across England and Wales saw property prices increase.
The hike in property prices means that prices are 1.5% higher than a year ago and goes some way to reversing an £11,000 decline in prices between June and September, when the property market saw a lull owing to the Olympics.
The South East and the West Midlands both saw 3.9% increases in property prices, while house prices rose by 3.8% in the North West and by 3.4% in Wales, while East Anglia saw the smallest increase in property prices with a 0.4% rise.
The £80 billion funding for lending scheme which was launched at the start of August has accelerated mortgage availability, although much of this has so far been centred around people with larger deposits of at least 20%.
Miles Shipside, director of Rightmove, a property search website, said, increase in property prices “is most likely attributable to the continued shortage of new property supply”.
Shipside said that sellers have a narrow opportunity to sell before the traditional winter slowdown, and if they don’t capitalise on it, they risk being left out in the lurch for months until the spring property market thaw.
The director of Rightmove also said that risk-averse lenders are causing a headache to the customers as they are looking closely at the mortgage application paperwork, as mortgage loans become increasingly difficult to obtain.