Early End to Spring Bounce as Prices Remain Flat in May

LONDON, May 21, 2012 /PRNewswire/ --

Rightmove reports that the average asking price for a property coming to market in May has remained virtually unchanged on April at £243,759, up just £22 (+0%). This indicates that the market is losing its traditional spring momentum earlier than usual this year, with the expiry of the first-time buyer stamp duty exemption a significant driver. Overall market volumes look set to remain subdued in 2012 as the motivation of new sellers to come to market has stalled too, with new listing numbers down by nearly 10% in May compared to April. It is a cause for concern that the market appears to have lost its spring momentum, as there is likely to be a longer than normal summer slowdown too thanks to the extra distractions of the Jubilee and two major sporting events. New research from Rightmove also shows that those wanting to trade up are outnumbered by those looking to trade down. This market mismatch has its roots in age demographics and the baby boomer generation's changing housing needs.

Miles Shipside, director of Rightmove comments: "New sellers asking more in May had become the norm, so it comes as quite a shock to see prices flat at this time of year. Perhaps the first-time buyer stamp duty holiday, and the knock-on activity it helped to create, has concertinaed the market's stronger than expected early spring momentum into the first four months of the year rather than the usual six. The high rainfall in May will have been a further factor in dampening prospective buyers' enthusiasm to get out and view property, and even if the forecast picks up we have a summer of sport and celebration ahead that will provide further distractions."

Research by Rightmove reveals that two in five of those who intend to sell over the next 12 months are motivated by a desire to 'trade down'. This group includes the traditional three Ds - Death, Debt and Divorce - but also features retirement, equity release and smaller property needs. This compares to only one in four who are looking to 'trade up', with growing family, space and school requirements. Trading down was the main motivation for moving in nine of the ten UK regions. Only in London does trading up come top of sellers' requirements, providing further evidence of the two-speed UK housing market.

For further statistics and to download the Rightmove May 2012 House Price Index please visit - http://www.rightmove.co.uk/news/house-price-index

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

SOURCE Rightmove

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