“We are continuing to see a huge rise in London, showing that London is on a trajectory of its own. With limited supply, huge numbers of houses and flats need to be built to satisfy an intense desire for home ownership.”
“We are starting to see house price growth in other parts of the country. This will balance things out a bit but it will never be anything like the growth in the capital. Demand for property is much greater there.” But others are less sanguine about the price chasm and its economic effects, suggesting a potential brain drain from the capital.
“The ONS figures show there is no house price bubble. The London market is more frenetic than other parts of the country with sealed bids and gazumping making an unwelcome return, but this is particular to the capital. Elsewhere, prices are either rising steadily, remaining flat or even falling.”
‘While October figures are still moving ahead and are higher than the previous three months, what we are also seeing is a growth slowdown on a quarterly basis.
“There may be a ‘press-commentary-effect’ here, where people are taking note of what is being said in the press about a housing bubble and then thinking twice before jumping in. That said, we are also entering a quieter phase for the market, with December traditionally a subdued month for housing transactions. So sellers may well be thinking ‘let’s get on with things’ before the December period and get our house sold.”