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| Average London house price rockets past £500,000 | Average London house price rockets past £500,000 |
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| New figures showing that the average asking price for a home in London has risen to more than £500,000 for the first time could add to fears of a new house price bubble being fuelled by cheap mortgages and government schemes to boost the market. | New figures showing that the average asking price for a home in London has risen to more than £500,000 for the first time could add to fears of a new house price bubble being fuelled by cheap mortgages and government schemes to boost the market. |
| According to the Rightmove property website, the average price of a house coming on to the market in the capital jumped by £16,000, or 3.3%, in a month to a record £509,000, while the London borough of Camden has joined Westminster and Kensington and Chelsea in an "elite club" where the average price-tag is more than £1m. | According to the Rightmove property website, the average price of a house coming on to the market in the capital jumped by £16,000, or 3.3%, in a month to a record £509,000, while the London borough of Camden has joined Westminster and Kensington and Chelsea in an "elite club" where the average price-tag is more than £1m. |
| The national average asking price has also hit a new high, having risen by more than £20,000, or 9.1%, since the start of 2013 to reach £249,000 – the strongest start to a year since 2004. | The national average asking price has also hit a new high, having risen by more than £20,000, or 9.1%, since the start of 2013 to reach £249,000 – the strongest start to a year since 2004. |
| Cheap mortgage rates for those buyers with decent deposits, courtesy of the government's funding for lending scheme, are driving positive sentiment, said a spokesman. | Cheap mortgage rates for those buyers with decent deposits, courtesy of the government's funding for lending scheme, are driving positive sentiment, said a spokesman. |
| In London, with demand for properties far outstripping supply, open-house viewings attended by multiple buyers were becoming more commonplace, and sealed bids were the norm in some areas, the website claimed. | In London, with demand for properties far outstripping supply, open-house viewings attended by multiple buyers were becoming more commonplace, and sealed bids were the norm in some areas, the website claimed. |
| Rightmove's data comes days after the Royal Institution of Chartered Surveyors (Rics) said funding for lending and the "help to buy" initiative announced in the March budget were responsible for a strong pickup in demand for residential property that was not yet matched by an increase in the supply of homes to buy. | Rightmove's data comes days after the Royal Institution of Chartered Surveyors (Rics) said funding for lending and the "help to buy" initiative announced in the March budget were responsible for a strong pickup in demand for residential property that was not yet matched by an increase in the supply of homes to buy. |
| Rics this week said conditions were at their most buoyant since mid-2010. | Rics this week said conditions were at their most buoyant since mid-2010. |
| The help to buy scheme is made up of two parts: a scheme where the government will partially guarantee £130bn of low-deposit mortgages with the aim of enabling many more people to obtain a home loan without the need for a prohibitively large deposit, and a £3.5bn investment in government loans to financially stretched homebuyers. However, Rics warned in March that ministers "need to be careful this doesn't create another housing bubble – pushing prices up at the expense of buyers". | The help to buy scheme is made up of two parts: a scheme where the government will partially guarantee £130bn of low-deposit mortgages with the aim of enabling many more people to obtain a home loan without the need for a prohibitively large deposit, and a £3.5bn investment in government loans to financially stretched homebuyers. However, Rics warned in March that ministers "need to be careful this doesn't create another housing bubble – pushing prices up at the expense of buyers". |
| The Bank of England governor, Sir Mervyn King, weighed in on the issue on Sunday, telling Sky News' Murnaghan programme that the scheme must not become a permanent one. "This scheme is a little too close for comfort to a general scheme to guarantee mortgages," he said. | The Bank of England governor, Sir Mervyn King, weighed in on the issue on Sunday, telling Sky News' Murnaghan programme that the scheme must not become a permanent one. "This scheme is a little too close for comfort to a general scheme to guarantee mortgages," he said. |
| Meanwhile, funding for lending allows lenders to borrow from the Bank at below market rates so they can make cheaper loans to businesses and first-time buyers – but some lenders have used this cheap money to offer mortgages with record-low rates that are only available to customers with big deposits. | Meanwhile, funding for lending allows lenders to borrow from the Bank at below market rates so they can make cheaper loans to businesses and first-time buyers – but some lenders have used this cheap money to offer mortgages with record-low rates that are only available to customers with big deposits. |
| Lending to first-time buyers has increased in recent months, though at the same time the buy-to-let market appears to be enjoying a new lease of life, with figures issued by the Council of Mortgage Lenders this month showing that lending to landlords jumped in the first quarter of this year. | Lending to first-time buyers has increased in recent months, though at the same time the buy-to-let market appears to be enjoying a new lease of life, with figures issued by the Council of Mortgage Lenders this month showing that lending to landlords jumped in the first quarter of this year. |
| Miles Shipside at Rightmove, which claims to feature about 90% of all properties for sale, said: "Despite a new national record, it's not 'green shoots of recovery' across the board, especially for the deposit-strapped mass market. They must wait patiently until January, when the Help to Buy scheme extends to the resale market, unless new homes developers can increase building dramatically this year." | Miles Shipside at Rightmove, which claims to feature about 90% of all properties for sale, said: "Despite a new national record, it's not 'green shoots of recovery' across the board, especially for the deposit-strapped mass market. They must wait patiently until January, when the Help to Buy scheme extends to the resale market, unless new homes developers can increase building dramatically this year." |
| According to the website, the average asking price of a newly marketed property in England and Wales rose for the fifth consecutive month, and every region notched up an increase. | According to the website, the average asking price of a newly marketed property in England and Wales rose for the fifth consecutive month, and every region notched up an increase. |
| Among the regions that have achieved strong price growth over the past month are the north of England (up £6,182, or 4.2%) and East Anglia (up £8,909, or 4%). However, it is the strength of the London market that has surprised many observers. At £509,870, the average asking price in the capital is £40,500 higher than it was a year ago, when the typical figure stood at £469,314. | Among the regions that have achieved strong price growth over the past month are the north of England (up £6,182, or 4.2%) and East Anglia (up £8,909, or 4%). However, it is the strength of the London market that has surprised many observers. At £509,870, the average asking price in the capital is £40,500 higher than it was a year ago, when the typical figure stood at £469,314. |
| London's best-performing boroughs included Camden, where average asking prices jumped 7.2% in a month to reach £1.05m; Brent (up 5.9% to £732,000); and Lambeth (up 5.6% to £529,000), according the site. | London's best-performing boroughs included Camden, where average asking prices jumped 7.2% in a month to reach £1.05m; Brent (up 5.9% to £732,000); and Lambeth (up 5.6% to £529,000), according the site. |
| Shipside said one problem was that new seller numbers were down by 5% in 2013 compared with last year, which was fuelling demand. Meanwhile, some fortunate buyers had benefited from financial assistance from parents and other family members. Rightmove said the "Bank of Mum and Dad" was supporting more than one in three of London's first-time buyers. | Shipside said one problem was that new seller numbers were down by 5% in 2013 compared with last year, which was fuelling demand. Meanwhile, some fortunate buyers had benefited from financial assistance from parents and other family members. Rightmove said the "Bank of Mum and Dad" was supporting more than one in three of London's first-time buyers. |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| Chelsea Building Society | |
| Yorkshire BS | Yorkshire BS |
| Provided by London & Country for the Guardian | Provided by London & Country for the Guardian |