Rightmove Reports a Decline in Asking Prices

The latest market research by Rightmove suggests that asking prices of the properties recently put on sale have fell in June. Despite the fact that numerous surveys reported an increase in property prices in the month of May, June saw a decline in average asking prices across the UK by 0.4%, leaving an average house priced at £226,436. Industry experts are determined that it is a mistake to confuse the increase in buyers’ enquiries with actual sales as best property and mortgage deals are only available to cash-rich buyers, which means that oftentimes buyers cannot afford themselves properties that they are looking for. Experts add that properties in popular areas are in, while houses and flats requiring major repair works are out, which means that house sellers have to adjust prices. Statistic shows that despite a 10% increase in the number of new sellers coming onto the property market, the supply is still low, which leads to a widening gap between the north and the south. For instance, the number of sellers that recently entered the property market in the South of England, including Greater London and East Anglia has declined by 45.3% compared to the same period in 2008; as for the other regions of England and Wales – they have witnessed a 40.1% decrease in new home sellers. That is why experts say that the smaller number of property sellers in the Southern region will lead to a faster market recovery in the south. Mr. Miles Shipside, Rightmove’s commercial director, says that despite the fact that cash-rich buyers are purchasing properties, the large sector of the property, including first-time buyers, lags behind. He says that lenders have to be aware of the fact that their policy of restricted lending hampers UK property market recovery.