Sales and instructions are up as London house prices continue to climb

The average London house price increased for the eighth consecutive month in March, rising 1% to £262,989 up from £260,375 in February, reveals the latest data from haart estate agents.

As confidence remains high and sellers are opting to enter the market before the introduction of Home Information Packs (HIPs) haart is expecting activity levels to rise substantially during and post the Easter break.

Easter set to be most successful yet

The growth in London house prices picked up again in March with prices increasing by 1% to reach £262,989 due to a continued shortage of available stock that was far outstripped by demand.

Paul Smith, chief executive of haart comments: “The London housing market has had a strong start to the year, with prices showing no signs of slowing, despite the recent succession of interest rate rises. Shortage of stock continues to be a driving factor with family homes particularly in demand.

“However, March saw the start of the predicted supply and demand ratio rebalance as sellers begun to realise the benefits of putting their property on the market before June 1st to avoid the added cost of the compulsory Home Information Packs. The Easter bank holiday will boost activity further as we prepare for the highest level of property viewings booked for a weekend so far this year.”

First time buyers still scarce

First time buyers are continuing to struggle to get a foot on the ladder and levels fell to 25% in March, the lowest for a year.

Paul Smith continues: “The confidence of first time buyers remains dented as they continue to be priced out of the market with prices rising for the eighth consecutive month. This group needs a period of stability to reinstate their confidence.”