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London house price growth lowest for five years

Wednesday 20th February 2008

Property analyst Rightmove published its February House Price Index this week, with good and bad news for the nations homeowners.

The figures show a return to positive house price growth in the wake of the Bank of Englands interest rate cut.

But the monthly rate of inflation in London was found to be less than one per cent compared with a national statistic of 3.2 per cent.

Coming in at 0.9 per cent, the rate of price growth in the capital is the lowest for five years, Rightmove says.

Previous February reports have seen monthly inflation in London ranging from 1.2 per cent in 2003 and 2004 to a peak of 4.1 per cent in 2006.

Commercial director of the firm Miles Shipside comments: "Its not the start of another price boom, but the interest rate cuts have no doubt given some sellers headier hopes.

"These are likely to prove to be unwarranted given the high level of existing property that is already on the market."

He adds that homes already up for sale are taking longer to sell than has historically been the case.

The average length of time it takes a house to sell at the moment is 93 days, rather than the 78 days recorded a year ago.

Despite the suggestion that many Britons could be facing affordability constraints, Rightmove reveals that a significant increase was detected in the number of potential buyers over the course of January.

Some 22 per cent more enquiries were logged on the companys website during the month, which could prove additionally encouraging for homeowners looking to sell.©

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