Rightmove: Record prices and massive growth

The average asking price for a property in England and Wales is at a record £218,954, and 11.5 per cent higher than a year ago, according to new research by Rightmove.

The online estate agent's asking price index also finds all southern regions of England and Wales have had annual house price growth of over ten per cent, with London prices up 19 per cent on a year ago.

House price growth across the country is up two per cent from September to October, with a shortage of desirable properties thought to be pushing prices up.

Miles Shipside, Rightmove commercial director, explained: “We have never had a sustained low inflation, low interest rate economy combined with widespread home ownership.

"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."

Rightmove believes the current market remains sustainable, provided no serious economic downturn forces asking prices down.

Mr Shipside added: "There is no respite on the horizon for potential first-time buyers. Renting for longer, buying your first home later, possibly via shared equity or an interest-only mortgage, is the reality. Reform of stamp duty for genuine first-time buyers in the chancellor’s forthcoming autumn statement would be a real boost for them."

For the full report (PDF format), see www.rightmove.co.uk XXX