The Daily Express ran an article today with commentary from fishneedwater.com about the surge in house prices being influenced by short supply.

You can read the full article here.

Peter Bolton King, RICS Residential Director and ex NAEA Director, said: “It’s encouraging that the market is starting to improve in all parts of the country with more buyers looking to make a move and more sales going through”.

“Even so, it’s a big concern that the supply of property is lagging so far behind demand.

“This imbalance is likely to result in further upward pressure on prices over the coming months, particularly in the nation’s hotspots.”

And London is a hot spot…pretty much all of it right now too.

Flat in SE22 – bidding situation.  Under offer massively over asking price.

Flat in SE15 – bidding situation and over 14 offers received.  Sold far in excess of the asking price.

Flat in SE23 – bidding situation.  Under offer far in excess of the asking price.

House is SE5 – bidding situation with over 12 offers received.  Sold far in excess of the asking price.

Flat in E2 – multiple bids and under offer far in excess of the asking price.

In the Express we commented “There’s just not enough property going round and this is sending prices ever higher and creating ­levels of interest for individual properties not seen for a long time.

“The property market is back and then some. Bidding wars are becoming an everyday occurrence in some areas of the UK.

“We’re seeing a huge amount of pent-up demand hit the market.

“In certain areas of London and the South-east, people are prepared to pay well over the asking price to secure the property they want.”

But just how are property prices growing in booming South East London.

Lets take East Dulwich, one of the most popular postcodes as an example and specifically popular Colyton Road, which is opposite Peckham Rye Park.

Excerpt from Net House Prices website:

From April 2012

From April 2013

We can’t take into account presentation or condition, but even if we assume they are reasonably similar, that’s an annual increase of over 15%.

I’d even go as far as saying some properties in East Dulwich have experienced closer to 20% growth in the last year, such is the demand for property.

And East Dulwich certainly isn’t alone, other local postcodes such as Honor Oak and Forest Hill in SE23, are experiencing similar surges in property prices and demand far outstripping supply.

So it’s great news if you are selling or own assets as part of your property wealth portfolio, but bad news if you are buying, especially if London and specifically South East London is your preferred destination.