UK asking prices up 2.1% in February

Taylor Scott International News

Average price of property coming to the market in the UK increased by 2.1% or over £5,000 this month with all regions reporting growth, according to the latest index report from Rightmove. This takes the average asking price to £279,004 and the annual price growth to 6.6% but this is down from 8.2% in January. The report says that there is an increasing demand for property and overall there has been a 31% increase in housing transactions in last two years in England and Wales, outstripping the 11% rise in the number of properties coming to the market in same period. The result is that demand is outstripping supply and some agents are reporting their lowest ever stock of quality property for sale. Indeed, there has been a 4% fall in new seller numbers compared to same period in 2014. ‘We’re now over a month into 2015, and despite predictions that the upcoming May election could slow home mover interest, Rightmove has recorded its busiest ever month for traffic and leads to agents,’ said Miles Shipside, Rightmove director and housing market analyst. He pointed out that decades of inadequate provision of homes to satisfy growth in demand are having an increasing effect, with a tight stock market resulting in a shortage of quality property for sale to trade up to. ‘For the right property at the right price, demand is outstripping supply and leading to some further upwards price pressure. However there is a limit to what the majority are willing or can afford to pay, especially with the tighter lending criteria,’ he explained. ‘In locations where there is a tight stock market some different tactics are required for a successful move as competition gets fiercer for quality homes as demand increases,’ he added. Housing demand is at a record high with visits to Rightmove hitting over 100 million in January for the first time ever and home hunters looking through a record 1.5 billion pages of property. New record busiest ever days were set on Sunday 25th and Monday 26th of January. The report also says that email and phone enquiries by home hunters to agents on Rightmove hit 4.3 million for the first time, equating to around 100 enquiries every minute. ‘Quality stock is in short supply in some locations, which is unsurprising given the structural under supply of homes and the recovery from the economic downturn,’ said Shipside. Indeed, Rightmove statistics show that the average available stock for sale per estate agency branch for the last two months at 57 and 58 properties has never been lower at the beginning of a year. New seller numbers this month are also 4% below those recorded in the same period in 2014. ‘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. What they may not fully appreciate is that this is the new norm, and… Continue reading →

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