House prices are continuing to boom, according to latest statistics from the Land Registry in March 2000. The average house price increased by 15.23% from £83,995 in 1998 to £96,687 in 1999. The volume of sales increased by 19% during the year.
All regions showed increases in prices, though Greater London topped the list at 23.06% followed by South West England at 17.26%. Bottom was North England where the increase was only 5.24%.
Research from Bradford and Bingley Building Society shows that buyers are now vastly outstripping sellers, which will prompt house prices to go even higher. There are at least three buyers for every property on sale. In the South East there are 13 buyers for each property. Other research showed that house buying is at its highest since 1989.
House prices are seen as one of the main engines of inflation. This sharp increases are likely to prompt higher interest rates to choke off inflationary pressures.
[2000]