Date Published 19 October 2009
Some London Agents have put up Sold Out signs as prices soar 12% in a month.
Asking prices for properties new to the market have shot up 2.8% from last month, Rightmove reported today, making it the largest October rise for six years.
The trend is almost right across Britain, although price rises are the most pronounced in London. In some parts of London, prices jumped by over 12%. The only regions where prices did not rise were the North and East Anglia.
Of the 95,000 fresh stock to the market across the UK, 22,000 are priced at under the current Stamp Duty holiday level of £175,000, which ends on December 31.
But it is notable that the number of new listings is down 36% on two years ago. Rightmove says that in London, agents are all but sold out of stock and are reporting that they have fewer than ten properties on their books.
Transactions levels are also still way down – 54% – on 2007. Rightmove warns that these are historically low volumes which distort house price movements.
The site also warns that housing market paralysis could set in for the first half of next year. It cites four possible reasons: Stamp Duty and VAT will have risen; Britain will be firmly entrenched in its new austerity age, when people may lose the taste for trading up; a general election will be forthcoming; and the prospect of HIPs being scrapped may encourage sellers to hold off.
For more information about selling your property please feel free to contact either of the Able Estates offices for some free professional advice.