1. London Home Price Growth Continues To Outstrip Rest Of UK
The north-south divide widened further in February after almost half of all postcodes in
London registered a property price increase, according to Hometrack.
The property analytics firm report that the average price of a residential property in this country
increased by 0.1% in February, led by gains in the south of the country, particularly in
London, while there were losses across the north.
Of markets registering an increase in prices, 74% were in London and the south-east, with
48% of London postcodes seeing property values rise in February.
Prices in the north-east fell by 0.2%, and 0.1% in both the north-west and Yorkshire and
Humberside.
Richard Donnell, director of research at Hometrack, commented: “The impetus for improved
market conditions and higher prices has been driven by London and the Home Counties of
southern England where there is the greatest mismatch between supply and demand.”
Whether asking Marylebone estate agents or Kilburn estate agents, most London-based
property firms agree that London’s property market prospects look bright moving forward,
thanks to low interest rates, rising property sales and more first-time buyers.
The number of homessold in the UK reached its highest level in over two-and-a-half years,
with chartered surveyors selling an average of 16.8 homes in the three months to February,
says the latest RICS housing market survey.
It would appear that the increase in mortgage finance availability from the government’s
Funding for Lending scheme may be slowly encouraging would-be buyers to test the market.
Peter Bolton King, RICS global residential director, commented: “It’s encouraging to see
that the housing market now appears to be picking-up across most parts of the UK despite
on-going concerns about the health of the economy. This may, in part, be down to the
growing availability of mortgage finance through schemes such as Funding for Lending.

2. However even with activity running at its best level since the middle of 2010, it is still well
down on its pre-crisis norm.”
It may not yet be full steam ahead for the national housing market, but it is certainly building
momentum - just ask Hyde Park estate agents, or pretty much any agent in London for that
matter.
Peter Rollings, CEO of estate agent Marsh & Parsons, comments: “The improvement [in the
property market] continues to be powered by the strong performance of London. Both
domestic and foreign buyers’ appetite for bricks and mortar in the capital seems
undiminished, and unless we see a sudden wave of properties hitting the market, prices will
rise further over the spring period.
Any further capital growth would help build on capital gains recorded last year.
Despite a slowdown in the UK housing market in the final quarter of 2012, residential
property prices still ended 2012 up 3.4%, thanks to strong growth in the opening six months
of the year, according to Assetz House Price Watch.
The data, which Assetz claim offers a more accurate picture of house price trends, shows
that the average price of a home finished the year at £202,824, an increase of £6,634 since
December 2011, led by gains in London.
Stuart Law, chief executive of Assetz, said: “The market remains two tiered with London
and the commuter heartlands of the South East and regional cities such as Manchester, Leeds
and Liverpool seeing stronger pricerises than elsewhere in the UK.”

3. With the base rate still at its historic low of 0.5%, many experts, including Mayfair
property consultants, Napier Watt, believe that more people will divert capital from low
interest savings accounts to high yield property investments in London, particularly units
that are well suited to the buoyant buy-to-let market.
The company, like many leading London-based consultants, is confident of further price
growth, with some experts projecting price rises of as much as 5% this year, suggesting that
the housing market recovery in London is picking up pace.