House price growth in London maintained momentum for the third consecutive month this year by registering an increase of 1.6 per cent in March, according to the latest House Price Index from Hometrack.
This comes as a welcome relief to investors, as house price growth has remained in the positive territory despite speculations of price crash last year. House price growth at a local authority level across London reveals a stabilisation in the rate of growth with prices changes over the last quarter remaining unchanged or improving modestly.
In fact, capital values have registered a small increase (0.9 per cent) over the last quarter. The market is likely to maintain the same improvements.
Incidentally, sales are not keeping pace with new supply coming to the market in London. Hometrack reported that there were 1.5 homes entering the market for every sale. The net result is longer sales periods - London has the longest time to sell of all the cities at 17 weeks. Other cities where sales are not keeping pace with new supply include Oxford and Cambridge.
At the national level, UK city house price inflation was +5.5 per cent in the 12 months to March 2018, up from 3.7 per cent a year earlier. The annual rate of growth ranges from a high of +8.1 per cent in Edinburgh.
Price inflation in London remains positive at +1.6% with no sign of this shifting into negative territory in the near term.