Property asking prices rise 2.4%
Property asking prices rise 2.4%
Monday 18th May 2009
The asking prices on properties in the UK rose by 2.4 per cent during the last month, official figures show.Rightmove claims the increase is the largest recorded in six years and has been attributed to a "mixture of ambition, optimism and necessity".
The increase has seen the average asking price in May rise to £227,441.
However, despite the rise in asking prices, the number of sellers entering the market is at its lowest level in six years, with prospective sellers "immobile" due to insufficient equity any move.
Commenting on today's figures, Miles Shipside, commercial director at Rightmove said: "The long-term worry is that the supply side of the housing market is now compromised for several years to come.
"Developers have shed much of their workforce so could struggle to increase capacity, and we are now seeing the lowest number of new sellers of second hand homes for the month of May since 2003. Many people who might have wanted to take advantage of the spring selling season to trade up will be victims of equity immobility.
"The choice of when and how to move is now out of their hands. While some of the impetus behind the increase of over £5,000 in average asking prices will be due to ambition or optimism, it will also be out of necessity as new sellers attempt to scrape together enough equity to move."
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