Shortage of property is at its lowest for 3 years

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by Kay Murchie

According to Rightmove, the number of properties for sale are at their lowest since April 2004. The online estate agent has discovered that the shortage of property is 18% lower than 12 months ago, which Rightmove says is behind this month’s property prices rising 0.5 per cent.

In England and Wales, the average asking price is £222,859, up from December’s figure of £221,751.Annual house price inflation is now at 13.5%

Where there is a shortage of houses, prices will continue to rise and properties will keep selling, despite the recent interest rate rise.

Since April 2007, flats and terraced houses experienced the highest price increases - the most popular property types for first-time buyers. The average asking price of terraces and flats were up £4,000 pounds in the last quarter, however detached property prices declined by nearly £5,000.

In spite of January’s shock rise in interest rates and rising inflation figures, Rightmove forecasts that asking prices to go up 6% this year, most of the increases anticipated before June 2007.