Rightmove Reports Average UK Asking Price up 2.6% to 235,512 pounds Sterling, as Cash and Supply Over-Ride Pre-Election Jitters

LONDON, April 19 /PRNewswire/ -- With the onset of the traditional moving season, new sellers coming to market ignored any pre-election jitters and economic woes and pushed up their average asking prices by 2.6% (5,898 pounds Sterling) in April according to the Rightmove House Price Index. This robust increase contrasts sharply with the 0.1% rise the month before, reflecting a very patchy housing market that is struggling to find a consistent and cohesive direction this spring. At a macro level, the stock shortages that have underpinned prices are easing slightly, with the current run-rate of properties coming to market now recovering to levels last seen before the Lehman Brothers collapse in September 2008. At a micro level, estate agents report wide variances in supply-and-demand dynamics between neighbouring patches, and also within property types in the same area. The affluence of purchasers seeking to buy in a particular location remains the decisive factor.

Miles Shipside, commercial director of Rightmove comments: "Rarer property types in desirable locations are achieving record prices. For 'location, location, location' you can also read 'cash, cash, cash.' Conversely, in areas where buyers have less access to cash or mortgage finance, or there is an over-supply of a certain property type, then sellers are having to price much more aggressively to secure a sale. There is increasing divergence between these different markets, with agents reporting some pockets where a couple of viewings find a cash-rich buyer, whereas a few miles down the road it's taking over 20 viewings to achieve a sale."

The run up to the election appears to be having little effect on the housing market. However, some opinion polls suggest that a hung Parliament is still a real possibility, and the uncertainty over who will form the next government may continue for much longer than usual. We would normally expect the "feel-good factor" to cause an increase in housing market activity once the new government is confirmed, but this would be negated by a period of post-election political turbulence.

Miles Shipside comments: "As far as the housing market is concerned, any election result is better than no result. In the event of a hung Parliament, the market is likely to go into suspended animation until greater certainty emerges."

For further statistics and to download the Rightmove April 2010 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

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

SOURCE Rightmove Group Ltd

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