Optimism among vendors sees asking prices up 2.4% in May

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by Kay Mitchell

Property website Rightmove has revealed that property asking prices are up for the fourth month in a row, up by 2.4%.

According to Rightmove, the average asking price of a home increased by £5,000 to £227,441, during the four weeks to May 9 – the largest percentage rise since May 2003 in the midst of the housing boom.

However, the group cautioned that as vendors see their equity dwindling away due to falling house prices, they may be pricing their homes at unrealistic levels.

Furthermore, the rise in asking prices also reflects the scarcity of property coming onto the market, said Rightmove.

Miles Shipside, commercial director of Rightmove, said: “The long-term worry is that the supply side of the housing market is now could delay the recovery of the housing market.”

According to Rightmove, just 61,000 new homes came on the market during May, compared with 135,000 in the same month last year.