London property running wild
Extraordinary numbers from the UK Land Registry with London house prices soaring by another 4.2% in April, now being up by 17% over the past year.
This is important because the Land Registry data reports on actual sales prices, not asking prices or mortgage data, and as such is seen to be the most authoritative.
This is the fastest monthly rate of growth ever recorded by the house price index, while the annual rate of growth is the fastest in more than a decade (click chart):
UK Telegraph reports:
"Jeremy Duncombe, director at Legal & General, said: "These figures highlight the two speed housing market that we are currently experiencing in the UK. London and the South East are seeing dramatic house price growth, while other parts of the UK, such as the North East, lag behind."
"He added: "In all areas of the country there is a real need to build more houses. At the moment demand outstrips supply, which increases the pressure on house prices and makes it harder for people to own their own home."
As we've always said, the places to own property in the UK are London, Cambridge and a few key areas in the south-east with easy transport access to London (and not the regional areas).
By way of an example, some towns in the north east such as Hartlepool, for example, have failed to even record 25% growth in the past two decades, while parts of Wales for example have also struggled, as you can track in the Land Registry's source data here.
The London chart has recorded truly extraordinary returns since 1995, increasing from an index of 100 up to an unprecedented 472.7.
I recall that it was widely opined in 1997 that house prices could not rise higher, yet the same index was only hovering around 110 at that time.
The wider London index receded to 318.3 following the financial crisis in May 2009, but has come roaring back stronger than ever before due to the mix of a continuing chronic undersupply of stock and a growing population.