A new survey shows that asking prices for properties in England and Wales jumped 3.1 per cent in
the last month, as sellers anticipated a hike in demand with the approach of spring – traditionally a
time of year that sees increased house sales.
The survey by property website Rightmove said the average asking price in February has peaked
at £230,030. However, although this might seem like good news for sellers, the month-on-month
rise in prices marked only a partial recovery against the 6 per cent drop seen across November and
December.
Rightmove also said transaction levels are likely to remain low through 2011 due to difficulties in
obtaining mortgage lending. Director Miles Shipside said: “Any hopes that transaction volumes
may be on the springboard preparing to return to historic norms will have been dashed by lenders’
predictions that 2011 lending volumes will match 2010’s dire levels.”
He added, “The current subdued market volumes are set to be the new norm unless the
seemingly never-ending discussions between government and mortgage lenders find some way
of increasing ‘Mr Average’s’ access to lower-deposit mortgages without pricing them out of the
market.”
There is also evidence that due to mortgage lending restrictions, some homeowners are instead
choosing to let out their homes, and renting more expensive properties themselves.
The survey data was taken from the asking prices of 121,635 homes that estate agents advertised on
the Rightmove site between the 9th of January and 12th of February.
