House prices flat as Britons stuck renting
HALF of Britons do not expect to buy a house until they are in their forties, a survey showed today, while the housing market stayed flat again through February.
Average rents rose to £890 per month at the end of 2011, but 61 per cent of renters cannot afford to buy, according to a survey published today by FindaProperty.com, with half of respondents saying they do not expect to buy a home until they are over 40.
Housing activity did jump this month, with a 35.7 per cent rise in the number of sales agreed, according to Hometrack’s monthly national housing survey.
The number of property listings jumped 15 per cent and the number of new buyers registering with agents rose 18.1 per cent – the biggest increase since February 2007.
However, despite this increasing activity prices stayed flat for the second month in a row, after a 0.2 per cent fall in December.
The rise in demand is also set to be short-lived.
“Activity amongst first time buyers looking to beat the stamp duty holiday – which ends on 24 March – has provided an additional and artificial boost to the figures,” said Hometrack’s Richard Donnell.
Data out today from Lloyds TSB shows house prices in east London have risen by over £60,000 since it was announced in 2005 that the Olympics were coming to the area.
However, that amounts to growth of 30 per cent, only slightly higher than the 25 per cent average across England and Wales, and house prices in the 14 postal districts closest to the games remain 22 per cent lower than the capital’s average.
“Over the long term, prices in the East End are likely to be supported by improved infrastructure and transport links,” said Lloyds’ Suren Thiru.