UK asking prices hit new high

Photo:   Alan Feebery

UK asking prices have risen to a new record high, according to Rightmove, as demand outpaces supply.

The property portal’s latest report shows that house prices have risen 3 per cent in June 2015, the highest ever rise recorded in that month. The average asking figure is now £294,351 – a record high that has been fuelled by the ongoing imbalance between supply and demand.

Indeed, while confidence in the property market was boosted by the Conservative win in May’s general election, only buyers were encouraged to increase their activity: an expected increase in the supply of homes on the market never materialised, according to a recent study by the Royal Institution of Chartered Surveyors.

Miles Shipside, Rightmove director and housing market analyst, comments:
“Some buyers had been holding back in the weeks before the election, leading to some sellers suffering an unseasonal price standstill in the late spring. In particular, sentiment and prices got hit in the mooted Mansion Tax price brackets. Now the unexpected election outcome has caused a strong rebound, prompting an upturn in buyer demand and helping new seller asking prices to hit their highest ever levels.”

“Agents report that the election surprise has given a boost to market sentiment, driven by more certainty about future economic and taxation policies. While would-be buyers have been able to respond quickly to these events, many potential sellers have so far failed to come to market,” he adds.

The previous asking price record was £286,133 set in April of this year, £8,218 below this month’s record. However, while June’s 3 per cent rise is partly catching up on lost ground from last month’s fall, it is also a reflection of strong housing demand not being matched by suitable supply in many parts of the country.

Indeed, six out of ten regions set new record price highs as the supply/demand imbalance continues to heads north.