Asking prices for property have edged up yet again, to set a third consecutive record, Rightmove reported this morning.
The average asking price of a property new to the market now stands at £246,235, up 1% from May’s £243,759.
Asking prices are now 2% up on August 2007, the month before the UK economy faced the run on Northern Rock.
In London, the average asking price for a property new to the market is now £447,440 – 1.7% higher than last month, and a new record. In the South-East, average asking prices are 0.5% higher than the precious record, set in October 2011, while the South-West is now just £300 short of its all-time high.
However, if London were to be removed from the equation, national average asking prices would still be 5% below their peak of August 2007.
The site also said that in real terms, property prices had not risen anywhere but in London. Taking inflation, as measured by the Retail Price Index, into account, property is now 13% cheaper than five years ago, Rightmove said, and in Wales, ‘real prices’ are 24% lower.
Rightmove also said further hikes in asking prices ‘seem unlikely’ with fresh supply of properties exceeding demand. It said that there were 29,394 new sellers a week prior to the Jubilee break – the highest new listings rate for two years.
Rightmove director Miles Shipside said: “While the national average price of property coming to market has set new records in each of the last three months, sellers should not break out the bunting in celebration until they have done their homework.
“It remains a very local market.”
He also said that agents are reporting a two-tier market – those who can afford to price realistically and as a result are selling their properties, and those who are equity poor and cannot afford to take a price hit.
Rightmove’s average asking price easily tops the ‘actual’ prices currently quoted by Halifax (£160,941) and Nationwide (£166,022), based on their mortgage approvals.