Asking price leap 4%

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by Gill Montia

New sellers increased average asking prices by 4.1% (to £233,252) in February, according to Rightmove.

The monthly surge was the strongest since April 2002, as sellers remained scarce.

There was also evidence of increasing housing market confidence, backed by a rise in the number of mortgage products available with a 10% deposit (up a third on a year ago).

In the property portal’s national survey, five out of 10 respondents said they view property as a lower-risk asset class, while six out of ten believe the current market favours buyers, suggesting buyer bidding power

Looking ahead, Rightmove reckons upwards price pressure is sustainable in cash rich micro-markets with stock shortages.

For example, London asking prices are now within 1% of their all-time high, as new listings are down 9% on this time last year.

Rightmove director, Miles Shipside, comments: “The biggest jump in new sellers’ asking prices for nearly ten years indicates there is pricing power if you are selling the right type of property in the right place where enough potential buyers have access to funding.”

He adds: “If your local market does not have those characteristics and your price-pump is based on little more than seasonal optimism and an estate agent’s hot air, then be prepared for buyer response to be a let-down.”