Average asking price breaks £250,000 barrier
According to the latest figures from property portal Rightmove, the average price of UK property coming onto the market in June was 1.2% (+£2,957) higher than May, passing £250,000 for the first time ever.
London set a new record, with the average asking price of property in the capital rising to £515,243, but the South East recorded the strongest growth, increasing by 14.8% since January to hit £329,968.
However, the surge in property values is by no means restricted to London and the Southeast.
Rightmove recorded strong growth in asking prices in all regions, with asking prices in the North, North West, Yorks & Humber, East Midlands, West Midlands, and Wales rose by 9.2% , almost keeping pace with the 10.6% seen in the south (Greater London, South East, South West and East Anglia) over the first half of the year.
It believes these results are a reliable indicator of growing confidence in the UK economy.
Miles Shipside, director and housing market analyst at Rightmove said:
“The good news is that this indicates a wider upturn, albeit at historically low but increasing volumes. The bad news for would be buyers is that it has helped propel the average price of a property coming to market through the quarter of a million quid milestone for the first time.
“It is worth remembering that while the asking price and the eventual sale price may differ by a small margin, the asking price is a very strong indicator of perceived market value and direction. It will take account of local supply and demand, as well as wider economic forces such as interest rates and consumer confidence.”
Ben Thompson, MD Legal & General Mortgage Club, added:
“Yet more strong figures and a sixth consecutive rise in prices may raise concerns from some commentators that the market is in danger of overheating.
“However, the fact remains that while London and the south-east continue to surge the picture in the rest of the country is not quite as clear cut. More work is needed to ensure the recovery in these areas starts to pick up the pace and isn’t left on the blocks.”