Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

U.K. February Home Values Rise on London Boost, Hometrack Says

March 4 (Bloomberg) -- U.K. house prices rose for the first time in nine months in February as demand for homes increased in London and southern England, Hometrack Ltd. said.

Prices in England and Wales advanced 0.1 percent from the previous month, the property researcher said in a statement today. The number of new buyers registering with agents rose 14.3 percent on the month, outpacing an 8.7 percent increase in supply. From a year earlier, values were down 0.1 percent.

“The impetus for improved market conditions and higher prices has been driven by London and the home counties of southern England, where there is the greatest mismatch between supply and demand,” said Richard Donnell, director of research at Hometrack. “We expect demand for housing to continue to grow as we move into spring.”

While higher inflation has squeezed households, the Bank of England’s Funding-for-Lending Scheme has boosted credit availability, with policy maker Paul Fisher noting that mortgage activity is beginning to revive. Nationwide Building Society said last week that house prices rose in February and there were reasons for “cautious optimism.”

In London, values rose 0.3 percent in February from January, Hometrack said. New buyer registrations in the capital increased 18.5 percent.

Still, the strength of the economic recovery remains uncertain, with a Markit Economics index on March 1 showing that manufacturing unexpectedly shrank in February as new orders plunged. The same day, the Bank of England said mortgage approvals unexpectedly declined in January.

To contact the reporter on this story: Svenja O’Donnell in London at sodonnell@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.