New sellers asking £11,561 more than a year ago
Rightmove has reported a seventh consecutive monthly rise in in prices for homes coming onto the market, up by 0.3% (£860) with sellers now asking 4.8% (£11,561) more than a year ago. All regions show a year-on-year increase for the first time since September 2010.
Miles Shipside, Rightmove director and housing market analyst said: “Given what we’ve seen over the first half of this year, we expect the average asking price of property coming to the market in England and Wales to end 2013 around 4% higher. While the current annual rate stands at 4.8%, in recent years the gains of the first-half of the year have been eaten away in the second. Between June and December last year, asking prices fell by 7%. The signs are that prices in 2013 will not dissipate as they have in recent years.
“London will continue to outperform the rest of the country and we also expect the South East, the main beneficiary of the ‘over-spill’ from the capital, to maintain its strong momentum, both driven by an on-going shortage of supply of property for sale. Asking prices in the capital are currently 29% higher than they were five years ago compared with 7% in the South East and just 5% nationally”.
The asking prices of properties being put up for sale in London this month increased by an average of £136 to £515,379, the third month in a row that the capital has set a new record, although there is a big difference between the increase in inner London (14.9%) and outer London (6.8%). The best performing areas in July were Richmond-upon-Thames, Hammersmith and Fulham, Islington, Lambeth and Wandsworth.
Meanwhile, 1 in 4 people expect house prices to increase by at least 5% in the next 12 months, say Halifax. Martin Ellis, housing economist at Halifax, said: “Sentiment regarding the outlook for house prices has improved markedly over the past quarter, continuing the trend seen since late 2012. This increase in optimism is partly due to house prices being stronger than expected in the first half of the year. We continue to see a clear north/south divide with significantly higher proportions of people expecting prices to rise in the south than elsewhere in the UK.
“Nonetheless, the market still faces substantial headwinds with, for example, house prices remaining above the historical average in relation to earnings. Such factors are likely to prevent a sharp acceleration in house prices.”
Doug Shephard, Director at Home.co.uk said: “Glance at the headline property statistics and anyone could be fooled into thinking that the wider UK economy was booming. The reality is that, while there are areas showing great improvement and even some showing signs of overheating such as Greater London, there are also several very poorly performing regional markets. The wider economy remains very fragile and yet the property market continues to be used by the media to define the wider economic health of the nation. Buy-to-let may well be booming but do the tenants have jobs? Government stimulus and bank bailouts seem to have saved the UK property market but attention must now be turned to jobs and reducing government debt.”
Home.co.uk’s figures show average asking prices across England and Wales are at their highest point since July 2008 with all areas of the UK recording price rises in the last month except Yorkshire and Scotland. They estimate the average asking price for homes in England and Wales is now £241,710, up 4% on July 2012.house prices, real estate
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