Asking Prices Rise 2.8 per cent on Month, Register First Year-on-Year Gain Since June 2008

The latest figures from the Rightmove House Price Index, released today, show:

• Average asking prices rose 2.8% in October, the largest October rise for 6 years, taking prices to £230,184, a £6,188 increase on September’s £223,996.
• Nationally, prices are now 0.2% higher than a year ago, the first year-on-year increase since June 2008.
• London house prices now the highest Rightmove has ever measured, 0.8% above their November 2007 peak and 5.2% higher than this time last year. Demand continues to outstrip supply as the lack of fresh stock forces prices higher, only 16,808 properties coming to the market this month compared to 19,890 which came off.
• Majority of buyers expecting more rises with only 1-in-10 expecting falls.
• The number of new properties measured in this month’s index remains subdued at 94,629, a 36% decrease on the numbers measured 2 years ago. The number includes 22,000 stamp duty exempt sellers which appear to be looking to cash-in before buyer incentive ends in January.
• Transaction levels are still 54% down on 2007 as ongoing lack of supply is driven by home owners deciding not to move given the current economic backdrop and forced sales subdued due to historically low interest rates and the effectiveness of forbearance schemes.

Releases: Rightmove.co.uk

Note: Rightmove measured 94,629 asking prices – circa 90% of the UK market. The properties were put on sale by estate agents from 13th September 2009 to 10th October 2009 and advertised on Rightmove.co.uk.

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