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House prices up 0.8 per cent in March, survey reveals

25/03/2008

The average asking price for properties in England and Wales was up 0.8 per cent in March, the latest report from Rightmove has claimed.

However, although this growth was significant in a stagnating market, the figure was lower than growth recorded in March 2007.

As a result, annual asking price increases fell back to five per cent during the month, down from the 5.8 per cent in February.

The average asking price for a property in England and Wales is now £239,655 according to the research.

Detached properties remain the most expensive, with average asking prices up 4.1 per cent over the last year to £340,632, while semi-detached homes saw a three per cent increase to £207,141.

Terraced properties saw an annual increase of five per cent in prices to £186,797, with flats up four per cent to £199,912.

According to Rightmove, the recorded increase in asking prices was caused by new sellers arriving on the market with unrealistic expectations with regard to achievable prices.

"Most sellers coming to the market seem to be ignoring the increased competition from other unsold properties and the challenge buyers now face in obtaining a mortgage," explained Miles Shipside, commercial director of Rightmove.

"As many of these sellers are likely to be buyers themselves, they seem to be trying to bank a higher figure for their home but want a bargain when they buy. It's human nature, but in the current market, sellers should price below their competition to achieve more interest now and avoid a larger price drop later in the year."