Positive signs for the property market

Posted: 21 Apr 2008 11:23:25 GMT

New figures show that asking prices for properties in England and Wales increased by 1.3 per cent in the year to April 2008.

New figures show that asking prices for properties in England and Wales increased by 1.3 per cent in the year to April 2008.

That is according to the Rightmove House Price Index, which put the average asking price at £239,521.

The monthly change was actually negative, with asking prices dropping by 0.1 per cent from March.

However, Rightmove said that this may actually be a good sign for the housing market as it shows that sellers are being more realistic.

"In spite of challenging market conditions, sales have not ground to a halt, and deals are still being done," said Rightmove's Miles Shipside.

"The market therefore has the potential to recover confidence if the right conditions are put in place.

"The slowdown is a natural market reaction to prices that we knew were overheated, though it has been magnified with the added major complication of the credit crunch," he added.

Rightmove also called on the Bank of England to cut the base rate of interest which has already fallen from 5.75 per cent in December to its current level of five per cent.

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