Average asking prices up 11% over year says survey

Posted: 16 Oct 2006 15:00:16 GMT

The average asking price on property in the UK has risen 11.5 per cent over the past year to a record £218,954, new figures from Rightmove have suggested

The average asking price on property in the UK has risen 11.5 per cent over the past year to a record £218,954, new figures from Rightmove have suggested.

All southern regions of the UK have experienced asking-price inflation of more than ten per cent and massive 19 per cent growth in London.

The average asking price has increased by two per cent since the beginning of September alone, with low supply of desirable housing thought to be the main factor.

"We have never had a sustained low inflation, low interest rate economy combined with widespread home ownership," said Miles Shipside of Rightmove.


"These unique conditions help push prices higher and higher. However, supply of houses coming onto the market is dropping as prices increase, because fewer home owners can afford to trade up.


"This adds to the shortage of suitable property for sale, resulting in further upward price pressure where demand outstrips supply.

"Where affordability becomes so stretched that buyers start to hold off, then sellers will have to price more realistically."


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