London leads recovery in asking prices

| October 19, 2009 | 0 Comments

Home movers in London have put the credit crisis behind them and are asking 0.8% more for their properties than in November 2007.

In its October round up of market, Rightmove has reported that the Capital is leading the way in positive sentiment for the UK housing market.

October has also seen the national average asking price at a higher level than a year ago, for the first time since June 2008.

The 0.2% national increase reflects a 5.2% surge in London asking prices, year-on-year.

According to the property portal, a shortage of stock is driving the swing, with 16,808 properties coming to market via Rightmove in October, compared with 19,890 coming off.

The firm points out that sellers’ markets are associated with an oversupply of buyers “ready, willing and able” to proceed, whereas in reality the volume of buyers in this position remains “well below historical norms”.

Commercial director, Miles Shipside, comments: “It’s a little bit crazy to have a sellers’ market given the time of year and the warnings of imminent fiscal austerity by all the main political parties.”

However, Mr Shipside acknowledges that agents from the north to the south of the country are reporting that quality properties are often selling within the week, with buyers “ready to pounce”, convinced that prices have bottomed out.

By way of confirmation, latest figures from the property portal’s Consumer Confidence survey (which will be released at the end of the month) show that only one in 10 of over 30,000 respondents believes house prices will be lower a year from now.

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