Falling supply lifts London’s house prices
LONDON’S house prices rose strongly in April, again outstripping the national market, industry data revealed today.
Meanwhile a new study shows most parents support their children in buying houses, with 11 per cent giving over £100,000, underlining the tough state of the market.
Average asking prices throughout the UK stayed unchanged in the month to May at £243,759, a two per cent rise on the year, Rightmove’s house price index revealed.
However London prices rose 0.9 per cent in the month to £464,944, the third consecutive monthly increase, bringing the annual rise to 8.9 per cent.
The number of properties coming onto the market fell three per cent on the month to 4,300 per week, while London’s prices continued to benefit from its safe haven status as Eurozone fears drove foreign buyers into the capital.
A separate study from PrimeLocation.com showed 63.4 per cent of parents contribute financially to their children’s first homes, paying an average of £38,903 – a 25 per cent subsidy on the £154,991 average price of first-time homes.
As well as 39.9 per cent contributing to a deposit, another 11.2 per cent allow children to live at home to help save money, 5.2 per cent make regular contributions to mortgage payments and 7.1 per cent have bought a property outright.