Property coming to market jumps 1.3%

Property coming to market jumps 1.3%
We've seen a lot of hesitation in the market of late, particularly amongst those in the likes of the South East who are worried about maximising their investment return

The latest data from Rightmove has shown that the average price of property coming to market increased by 1.3% this month, the same average rise as the same month last year.

According to Rightmove, a monthly rise of this size has only been exceeded once at this time of year since 2007.

Other highlights of the report included modest annual growth of 2.3% compared to 7.6% in March 2016, highlighting slower pace of increase. Mighty Midlands leads the rest of the country with East and West Midlands prices at record highs.

Brian Murphy, Head of Lending for Mortgage Advice Bureau, said: “The data released by Rightmove today reports trends on asking prices, rather than completed transactions, therefore gives us a current ‘temperature check’ of the UK housing market and sentiment. The data suggests an average month on month increase of 1.3% on properties coming to the market, suggesting that consumer confidence and demand in bricks and mortar, coupled with a paucity of stock in many towns and cities, is leading to asking prices remaining steady if not increasing in some areas, most notably the East and West Midlands.

Given encouraging activity levels last month, this isn’t a huge surprise and is in line with normal seasonal trends – in fact, the average March price rise over the last few years according to Rightmove data has been 0.9%, so in this respect, so far this year asking prices would appear to be performing above expectations. That said, the annual increase reported by Rightmove of 2.3% is more modest than previous years, but this in itself will possibly be reassuring for many. This is because we need to be mindful of affordability and any ongoing, significant increases in house prices could create a turbulent market that many would seek to avoid, as it would price many purchasers out of the market.
 
Overall, it’s too early to tell if we will see a blooming Spring market over the next couple of months, but if the figures continue as they have so far in March, it’s possible that we may see a balmy picture rather than a stormy outlook as we move towards what is normally one of the busier times of the year."


Russell Quirk, eMoov CEO, had this to say: "Depite Rightmove's best intentions to deliver transparent market analysis, the nature of their data being based on asking price and not sold price means it should only be viewed as a tentative toe dip into the state of the UK market at present.
 
Today's numbers may help to compound the current issue of a shortage of housing but this isn't an anomaly that has only just surfaced. It has been rife for quite sometime now and so this latest data would suggest the addition of a seasonal pickup as we head into the busiest time of the year. This heightened market activity, coupled with the ongoing stock shortage, is leading to a strong hike in prices.
 
We've seen a lot of hesitation in the market of late, particularly amongst those in the likes of the South East who are worried about maximising their investment return.
 
The reality is that in areas like the Midlands where prices aren't as inflated, a more no nonense approach is benefitting homeowners as they proceed with their sale and see stronger, more natural price growth across the board as a result."

Hannah Maundrell, Editor in Chief of money.co.uk said: “House prices in the capital are cooling off slightly and London is no longer leading the way where property price growth is concerned. This is no surprise; few people can afford the crazy London house prices. The Midlands is a much more affordable place to buy and with buzzing cities and booming industry it’s becoming an increasingly attractive place to live.

If you’re looking to get on the ladder think outside the box; going for an up and coming area will get you more bang for your buck. With house prices almost at their highest ever levels it’s really a case of choosing where you live wisely so you make every penny count.”

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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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