London house prices have witnessed their biggest new-year surge since 2008, as the number of home sellers on the market increased significantly pushing up the asking rates.
This is good news for homes in the capital but not so good if you are living outside of London. A monthly survey by real estate agent Rightmove showed that asking prices for London homes on its website rose 3.6 percent in January from the previous month to an average £480,890 ($764,000). Prices increased 9.7 percent year-on-year, the biggest annual increase since February 2010.
Nationally, prices rose 0.2 percent to £229,429 in January from with December. January prices were 2.4 percent year-on-year.
The number of new properties hitting the London property market rose 29 percent from a year earlier. If that becomes a trend, Rightmove said it could help to better balance supply and demand and slow house-price growth. Demand in London has boosted values and helped the city outperform the rest of the country over the past year.
The survey also showed a rise in the number of new sellers on the website, increasing 29 percent in London and 22 percent in the country from a year earlier. Most of the new sellers came to the market because they wanted to and not because they were forced to sell.
New seller prices rose by 2.4 percent year-on-year, and Rightmove traffic rose 27 percent in the first two weeks of 2013.