Price Jump as Agents Scramble for Stock - Rightmove House Price Index February 2010

LONDON, Feb. 15 /PRNewswire/ -- The Rightmove House Price Index for February 2010 reveals that average asking prices increased by over 7,000 pounds Sterling in the past month to 229,398 pounds. This is the largest monthly increase since April 2007 and represents a year-on-year increase of 6.1%.

Sellers appear to be hoping for a prosperous new year, and are asking an average of 3.2% more than last month. This average rise of over 7,000 pounds is surprising given the difficult UK and global economic picture. However property in popular locations (such as Property for sale in London) remains in short supply, supporting upwards price pressure, as seen in London where the average asking price this month is the highest we have ever recorded.

Miles Shipside, commercial director of Rightmove comments: "A price jump of over 3% is more comparable to the pre-credit-crunch boom-times. Sellers are setting their sights higher, and some agents are going along with them in order to win scarce instructions. Property for sale remains scarce in popular areas, but new supply to the market has to be priced at what buyers are willing and able to pay. An average increase of over 7,000 pounds may prove to be a bit too spicy for some buyers' tastes, now that economic constraints have forced them to develop a simpler palate."

Rightmove site traffic is a good barometer of prospective buyer intent, with January proving to be a record month. Pages viewed were up 29% on January 2009, at 710 million. January is the traditional time for bargain hunters to start shopping around, though with house prices recovering there will be fewer bargains to be had this year, and agents and sellers may have to work harder to put a deal together. Shipside observes: "The record site activity ties in with the findings of the Q1 Rightmove Consumer Confidence Survey, where 62% of the 32,000 surveyed stated they believe it is a good time to buy. However, many of those searching are likely to have a degree of nervousness about the economic outlook, with only 11.1% of those surveyed believing that the country's current economic conditions are favourable. With finance still tight, properties will have to be beautifully presented and keenly priced in order to convert this high level of buyer interest into firmer commitment."

Tom McGuigan - Rightmove Press Office, [email protected], +44(0)207-087-0700

SOURCE Rightmove Group Ltd