Asking Prices Up 1.7% Despite Biggest Jump in Unsold Stock Since 2007

LONDON, April 18, 2011 /PRNewswire/ --

Rightmove, the UK's number one property website, publishes its House Price Index for April today and finds that average UK asking prices increased by 1.7% over the past month to now stand at 235,822 pounds Sterling.

With average unsold stock per estate agency branch seeing its biggest monthly increase since May 2007, up from 70 to 74 properties, the decisions of new sellers to increase asking prices by an average of 1.7% (4,031 pounds) this month look to be over-optimistic. This is a clear indication that the number of properties available to buy is not being matched by the number of buyers able to proceed.

Miles Shipside, director of Rightmove, comments: "With buyers still struggling to raise the necessary finance, the net result has been the biggest jump in unsold stock on agents' books that we have recorded in nearly four years. While stock levels normally increase during the first half of the year, this is a larger increase than normal. With government cuts starting to bite and interest rate rises still expected in the second half of the year, those who are serious about selling should look to price more keenly in the spring selling season".

This month, a weekly average of 28,390 properties came to market, an increase of 9% on April 2010 and up 28% on April 2009. With the latest Bank of England mortgage approval figures showing no year-on-year change, buyers' inability to soak up this increased supply has resulted in the large increase in unsold stock per estate agency branch.

Estate agents in the wealthier southern regions are reporting more buoyant market conditions and sales activity. Buyers are more plentiful in these areas as they tend to have larger deposits, leading to a continuing shortage of properties in the more popular locations. London's spring sellers have felt sufficiently confident to market their properties at a new asking price record this month of 431,013 pounds.

Shipside comments: "While most of the country struggles to sell or raise deposits to buy, demand from cash-rich buyers in London has meant that sellers there can ask record prices. This is driven by London's international status, its preponderance of wealthier buyers, and a shortage of available land and properties."

For further statistics and to download the Rightmove April 2011 House Price Index please visit - http://www.rightmove.co.uk/news/house-price-index or search for local house prices at http://www.rightmove.co.uk/house-prices.html

Rightmove Press Office, [email protected], 0207 087 0700

SOURCE Rightmove