House prices flat in February, says Hometrack

A shortage of supply is propping up prices, says the latest survey from the property analysts.

House prices were flat in February in England and Wales, according to the latest figures from property analysts Hometrack.

A 0.1% increase in London prices offset tiny falls in six other regions – the East Midlands, the north east, the north west, the south west, Wales and the West Midlands. The other regions were flat.

There was an 18% increase in the number of prospective new buyers registering with estate agents, which Hometrack says is the highest since the economic downturn started. This number was boosted by first-time buyers looking to beat the Stamp Duty deadline. However, Hometrack says the first-time buyer boost is an “artificial” one as they only have until 24th March to complete a purchase.

There was a 10% increase in the number of homes on the market in February. However, Hometrack says an overall lack of supply over recent months is keeping prices steady and will continue to do so in the short term.

The percentage of asking prices achieved increased slightly from 92.5% to 92.9%, although that doesn’t take into account any reductions in price over a property’s for sale period.

Last week, property website rightmove said that asking prices have jumped by the highest amount in a decade.

Hometracks says the average time to sell a home is lowest in London at just 6.1 weeks, and at its highest in the East Midlands at 13.1 weeks.

More: House price winners and losers | How to sell your home in a slump

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