House prices in Wales 24% lower than five years ago

There has been a third consecutive record for new sellers’ asking prices, according to new figures released today by Rightmove. The national average asking price for June is £246,235 which is an increase of £2,476 over May. It also shows that:

· this national average figure is now 13% behind inflation-adjusted peak of August 2007
· London is the only inflation-proof area with average asking prices 3% ahead of RPI since August 2007 while Wales has fallen furthest in real terms over the period
· 29,394 sellers a week came to market prior to the Jubilee break, the highest new listing run-rate for two
years

“While the national average price of property coming to market has set new records in each of the last three months, sellers should not break out the bunting in celebration until they have done their homework,” says Miles Shipside, director at Rightmove. “It remains a very local market ruled by property style and location, and a few minutes study will reveal whether your property is hot or not. Agents report a two-tier market where those who can afford to price realistically are selling, while those who are equity-poor are struggling to sell as they often have to price up to make any prospect of a move viable. The traditionally more active spring window is closing and a summer of sporting distractions underway. Cutting your asking price to be cheaper than your competition and promoting your selling points better will be the key to avoid being an also-ran in the race to sell”.

At £477,440, London is up 1.7% (£8,126) on the previous average asking price high set last month, while the South East is 0.5% (£1,662) above its previous record set in October 2011. The South West too is only some £300 off an all-time high.

“The better properties in the better areas remain in short supply,” added Shipside, “giving sellers of sought-after stock, and their agents, the confidence to come to market at a higher price. The right property within commuting or holiday bolt-hole distance of the capital seems to be an attractive each-way bet with the potential to be both recession-proof and offer good odds to keep pace with, or even outstrip, inflation”.

Greater London is the only region where the average asking price has outpaced inflation and is 3% ahead over the period. The other nine regions of England and Wales have seen double-digit percentage falls in new seller asking prices when adjusted for inflation, with Wales the worst performing where real prices are now 24% lower than August 2007.

Photo: San Sharma

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