People looking to get on the housing ladder breathed a sigh of relief when government figures showed that property prices stabilised over the last few months.
However, according Rightmove’s latest statistics, the end is not nigh for soaring UK house prices.
The listings website, one of the largest in Britain, blamed a “decades of inadequate provision of homes to satisfy demand” for the latest boost in asking prices across the country.
“Many who are contemplating moving will have noticed a lack of suitable property for sale in their area, and may be hoping that it’s a temporary shortage,” said Miles Shipside, Rightmove director, in a statement.
“What they may not fully appreciate is that this is the new norm, and is the consequence of over 20 years of not enough homes being built to meet the burgeoning growth in household numbers, resulting in a lack of quality homes for sale in many popular areas of the UK.”
Rightmove said asking prices for British properties surged by more than 2.1%- or £5000 ($US7717)- in February.
This means the average asking price for a home in England and Wales is now at £279,004. This is over £8000 more than the Office for National Statistics’ current average of £271,000.
British property prices have surged 56% since 2004, and by over 90% in London.
The Confederation of British Industry (CBI) warned last year that 240,000 properties need to be built annually, in order to accommodate rising demand across the country.
Unfortunately, over the last 14 years, only 200,000 homes have been delivered annually in four periods.
Meanwhile, Zoopla, which owns two of the UK’s most popular residential property websites racked up 50 million visits last month.