Property prices rose by 6.1 per cent in February when compared with the same month last year, according to a new survey published today.
The figures, compiled by Rightmove, suggest that the average cost of a home in England and Wales is now £229,398, although this figure is not seasonally adjusted. This represents an increase of 3.2 per cent from January. Prices in London have jumped markedly, now resting at £427,987 - higher than at the zenith of the boom.
These results are likely to be unwelcome news amongst buy-to-et investors and professional landlords looking to increase their portfolio. It would appear that, for the moment at least, the best property deals have now passed.
But there is some concern that the rate of increase seen in the latest figures is not sustainable. Mortgage availability is still very low, and prices are being artificially inflated by a lack of supply. This has led some to suggest that a second boom may be on the way, as access to mortgages begins to outstrip housing stock.
The figures also refer to asking prices - not the average prices of completed deals. A significant proportion of properties will not reach their owners' initial asking prices.
