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The most popular moving date is today, September 1, the Post Office has revealed. The two next

Prospective first-time buyers sink to new low
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The proportion of buyers expecting to buy for the first time in the next 12 months

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Henry Pryor Blog
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Welcome to a new monthly blog by Henry Pryor, estate agent turned entrepreneur, inventor and expert

Rightmove profits climb 39% as more agents sign up
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A rise in the number of agents and an overall willingness to pay more to Rightmove

Portal creates new 'check out your competition' stats
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Six in ten mortgages are now for house purchase
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The proportion of mortgages being taken out for purchases, as opposed to remortgages, is at its

News Story

London agents put up Sold Out signs as prices soar 12% in a month

Monday 19th October 2009

Asking prices for properties new to the market have shot up 2.8% from last month, Rightmove reported today, making it the largest October rise for six years.

The trend is almost right across Britain, although price rises are the most pronounced in London. In some parts of London, prices jumped by over 12%. The only regions where prices did not rise were the North and East Anglia.

Of the 95,000 fresh stock to the market across the UK, 22,000 are priced at under the current Stamp Duty holiday level of £175,000, which ends on December 31.

But it is notable that the number of new listings is down 36% on two years ago. Rightmove says that in London, agents are all but sold out of stock and are reporting that they have fewer than ten properties on their books.

Transactions levels are also still way down – 54% – on 2007. Rightmove warns that these are historically low volumes which distort house price movements.

The site also warns that housing market paralysis could set in for the first half of next year. It cites four possible reasons: Stamp Duty and VAT will have risen; Britain will be firmly entrenched in its new austerity age, when people may lose the taste for trading up; a general election will be forthcoming; and the prospect of HIPs being scrapped may encourage sellers to hold off.

Commercial director Miles Shipside said all this “could stamp out early signs of recovery”.

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Posted By sceptic on Monday 19th October 2009 19:36:48

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an the reason is............agents short of stock over valuing to get stock on!!! simples

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Posted By MonkeyTennis on Monday 19th October 2009 11:23:46

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An interest rate hike would throw this tentative recovery off course. Despite higher prices, the volume of willing and able buyers is still low, higher rates will bring in a wave of new instructions and bring prices crashing down.

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Posted By Amyh on Monday 19th October 2009 11:11:34

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These huge price rises are just what is required to get interest rates back up to a more sensible level - and not before time. It is absurd that the B0E is not responding and the market re-approaches its overpriced highs. Let's hope that Messrs Osborne and Cameron realise that if they are going to balance the economy back towards saving that the irresponsibily low current interest rate regime has to be ended immediately.

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Posted By ace on Monday 19th October 2009 10:23:19

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I hope we will soon get the usual London Ripple effect soon, It is certainly not happening yet. October so far has been dire, with almost nothing happening in the area we cover in terms of sales, I am just pleased that the demand for lettings appears to have improved.

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Posted By Berkshire Agent on Monday 19th October 2009 10:15:03

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If rightmove are to be correct with saying fewer people will move in the first half of 2010 it will only but push prices up further. How much higher will prices rise in the first half of 2010??? a minimum 10% rise i reckon. Where is this all going to end up i wonder??

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Editorial Contact Details - Rosalind Renshaw | rosalind.renshaw@estateagenttoday.co.uk | 01252 843 566.