October sees prices rise

Posted: 16 Oct 2007 11:51:30 GMT

Property prices increased in October, according to the latest House Price Index from Rightmove.

Property prices increased in October, according to the latest House Price Index from Rightmove.

The firm has published results which show that prices rose by 2.7 per cent, following a 2.6 per cent drop in September.

It means that the average property price stood at £241,642 in October, up on the £235,176 recorded in the previous month.

However, Rightmove says that the sharp increase is likely to be down to the controversial introduction of Home information packs (Hips).

The packs, which cost in the region of £300, were expanded to include three-bedroom properties from September 10th.

The firm reports that there was a 65 per cent increase in the number of houses of this size being put onto the market in the week leading to this date and this distorted the market.

With this in mind, Rightmove says that now may be a good time to buy a house as there is currently an increase in supply.

"Surges of properties coming onto the market increase both competition among sellers, and increase buyers' bargaining power. Buyers are not soaking up this extra supply at the moment, and sellers who need a quick sale will have to respond by pricing competitively," said Miles Shipside from the firm.

"The next few months should be a good time to pick up a deal as some sellers become more desperate to find a buyer," he added.

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