The competition for houses continues. This competition for very limited supply is forcing the housing boom to surge forward into the warmer months.
Nicky Stephenson, MD of Fine and Country has commented that the imbalance between supply and demand has caused house prices to increase. One in three homes are now selling above the original asking price.
The figures shown by the National House Price Index have shown that annual house price growth is accelerating. House price growth in May 2021 increased to 10.2%. This is the highest increase since August 2014.
Yorkshire and the Humber has seen the largest house price increase, with houses in this region rising by an average of 14%. This is followed by the North East where prices rose by an impressive 13.7%.
This trend is likely to continue as long as the demand for housing stock outweighs the supply. This puts a huge upwards pressure on house prices. This can be seen in Aprils figures which show that 32% of houses were sold for more than the original asking price.