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Rush of buyers leads to rise in house prices
Jonathan Prynn and Paul Waugh30 Apr 2009
House prices in London rose last month for the first time in a year, fuelling hopes that the worst of the property crash could be over.
The average house sale price in the capital went up 0.6 per cent to £299,613 in March, according to official figures from the Land Registry.
That is still 15.4 per cent down on last year but the first monthly rise since March last year. The highest increases were in Brent (2.5 per cent) and Camden (2.1 per cent).
The latest encouraging news from the property market was one of several more optimistic economic indicators.
A poll showed that consumer confidence rose for the third month in a row and shoppers were more bullish about recovery than at any time since the Northern Rock collapse in August 2007.
The GfK NOP poll found that the index measuring overall consumer expectations was still negative, at -15, but jumped 16 points since last month.
Rachael Joy, of Gfk NOP, said: "Significantly, this is the third consecutive month we have seen a rise in the index. This could be down to a combination of the simple belief things are improving as well as the feelgood factor of improving weather."
A survey of business owners in London by accountancy firm Shelley Stock Hutter found that almost two thirds believe they will be through the crisis within six months, with a quarter already seeing things improving.
Estate agents said the turnaround in the property market began in January when there was a surge in buyers after the virtual closure of the market during the autumn financial crisis.
Peter Rollings, managing director of Marsh & Parsons agency, said: "We're going to jiggle along the bottom for a while, prices aren't going anywhere quickly but they have stopped falling.
"Conditions are much, much better than they were and there are deals being done. London is where it started to fall and London is where it is starting to recover."
He said values troughed at 25 to 30 per cent below the peak levels seen in the summer of 2007, just before the credit crunch ignited.
The property recovery may also have been helped by a City bonus round that injected billions of pounds into London's economy.
Analysis of preliminary pay data from the Office for National Statistics for the five months of the City bonus season to April suggests payouts will be between £6.5billion and £7billion, compared with £13.7billion last year.
The Land Registry figures show that nationally prices are still falling. In March the average was down 0.4 per cent to £152,895, an annual fall of 16.2 per cent.
Reader views (3)
Keith, you are one confused person. Either that or you are Gordon Brown using a false name. The PM has made a hash of any meaningful recovery because of the debt we will be in for the foreseable future. As a friend of mine said, these will be known as the brown years, if you know what I mean.
- Dan, manchester, 01/05/2009 09:43
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Keith, how much do you get paid to post on this - and maybe other - website(s)?
- Frances, London, 30/04/2009 18:43
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It is good to see that the PM's economic medicine is already working. Well done Gordon Brown, There is no substitute for experience in economic leadership
- Keith Price, Luton, England, 30/04/2009 15:57
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