Further evidence of a recovery in the housing market emerged today, with figures showing house prices rose 0.3% in April – the third consecutive month that values have increased across the country.
The monthly survey by Hometrack – which tracks sentiment among over 5,000 estate agents and surveyors – also found demand in London has grown three times faster than supply over the last quarter.
London also boasts the shortest average time on the market with just over four weeks, while the national average is more than double that at just under 10 weeks – a level last seen in London in October 2007.
"A lack of housing for sale is a key feature of the market," the survey reads. "For the last three months supply of new housing has failed to keep pace with demand. The supply-demand imbalance continues to put upward pressure on prices."
Today also saw the release of figures from Halifax that showed the average price of a new build property in the UK has increased by 12% over the past five years and now stands at £233,822, outstripping a rise of 9% for all properties.
Over the past 10 years there has been a national rise of 40%, with London leading the way with a rise of 57% to £415,540.
Craig McKinlay, new mortgages director for Halifax said new homes were an important part of the market.
"In a relatively flat housing market, the new homes market has changed enormously over the past five years," he said. "We have seen a lot of positive sentiment towards the new homes market, with various schemes launched to get the house building industry moving and changes in policies and deposit requirements allowing shared equity buyers to participate more fully in the new build market."