UK Property Asking Prices Rise in September

Latest report published by the British property company – Rightmove Plc – suggests that British property asking prices increased as a result of improved market confidence of home sellers and decreased supply of marketed properties. According to the statement of Rightmove, published on Monday, September 21st, an average asking price of a traditional British home rose by 0.6% to a level of £223,996, which figure compares to a 2.2% fall registered in August this year. It should be noted, however, that rises of asking prices were mainly seen in London, East Anglia and the southwest of the UK, while the rest of Wales and England saw slight decreases in asking prices. According to Mr. Miles Shipside, Rightmove’s commercial director, the combination of certain factors, such as improved consumer confidence, increased demand and low supply, contributed to changes in UK asking prices this September. He also mentioned that the North of the UK seems to have suffered more in terms of property asking prices from the downturn in the property sector. According to Rightmove’s data, this September asking prices for UK property increased by 0.9% in London, by 1.5% in the southwest, and by 8.4% in East Anglia, while an average decline was noticed in Yorkshire and Humberside with an average house price falling by 3.6%. The Rightmove’s report also highlighted the year-on-year difference in UK property asking prices. According to it, average house prices in England and Wales in September 2009 are 1.5% lower than in September 2008, which fact is coupled by the lowest level of stock of marketed properties for the past 18 months. The property company’s report showed that only 8 properties were put on the market for every 10 properties sold. Moreover, only a small number of buyers are able to provide 40% deposits that are required by leading UK lenders offering record-low mortgage interest rates. Rightmove experts warned UK lenders against their current practice of cherry-picking cash-rich borrowers as it is expected to have a negative effect on the already weak British property market.