Average asking prices crash through the £300,000 mark for first time

The average asking price of a home new to the market in England and Wales has passed the £300,000 mark for the first time.

The average is now £303,190, Rightmove reported this morning.

It is exactly ten years since new asking prices went through the £200,000 barrier, so that in a decade, asking prices have shot up over 50%.

Despite the housing market crash during that time, new asking prices did not go back down below the £200,980 reported in 2006.

Average wage growth of 22% during the last ten years has been far lower than house price inflation.

Rightmove also reported this morning that new asking prices rose 1.3% compared with February – the second highest monthly jump at this time of year.

Rightmove director Miles Shipside said: “On average 30,000 properties have come to market each week over the past month, up by 3% on this time last year, but there are insufficient numbers of newly-listed properties in many parts of the country to meet demand.

“Visits to Rightmove are up by 14% in early March compared to the same period in 2015, so it’s no surprise that those buyers who can borrow more or can find some extra cash are keeping the price merry-go-round spinning, even though increasing numbers of aspiring home-movers cannot afford the ride.”

The rise in new asking prices is not being driven by London, where prices are at a standstill. Six out of ten regions have seen price rises, and three of the top four rises are northern regions – the west midlands, north-west and Yorkshire & the Humber come after the south-west, and ahead of all other southern regions.

Although new asking prices across London have barely moved month-on-month, homes in the capital nevertheless have price tags more than double the average, at £644,045 – an annual increase of 11%.

That also remains the largest rate of annual house price inflation anywhere in England and Wales.

Average time to sell last month was 68 days, down from 79 in the same month last year. In London, average time on the market is just 47 days, lower than at any time last year.

Average stock per agent, including properties under offer or sold subject to contract, was 54 in February compared with 59 last year.

Asking price trend chart

10 Comments

  1. NewsBoy

    Just wait for the Brexit talk to take hold and you may see them “crashing” through same barrier again!

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    1. Mark Connelly

      Yeah because you think being in the EU has fuelled UK house prices? As opposed not building enough for the past 40 years.

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  2. Estate Agent W1

    On average 30,000 properties have come to market each week over the past month-is that with or without portal juggling :)

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  3. mrharvey

    The rise in new asking prices is not being driven by London, where prices are at a standstill…
    Although new asking prices across London have barely moved month-on-month, homes in the capital nevertheless have price tags more than double the average, at £644,045 – an annual increase of 11%.

    Somebody please me I’m being stupid, but how can prices be at a standstill if they’ve increased 11pc? Stagnant or growing, which is it? Can somebody clear this up?

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    1. mrharvey

      Or is the 11pc based on the ten years since 2006, and NOW they are at a standstill?

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      1. PeeBee

        mrharvey

        “The rise in new asking prices is not being driven by London, where prices are at a standstill…”

        Don’t be so sure in what you say.

        According to RM, there are “Over 1000” ‘new’ listings in London in the last 14 days.

        THE TOP 1000 of those are at values IN EXCESS of £1.75 million – and as high as £THIRTY MILLION.

        The £30,000,000 property is listed TWICE with two different Agents.

        There is also a ‘double’ listing at £15.5 million; one at £13.75m… another at £13.5m… the list goes on.

        There is one, which is stated as “Added on 18/03/2016”, which was ACTUALLY listed on 22/9/15.  I can’t be chuffed to look for what will no doubt run into DOZENS of potential #portaljuggle properties – but you get the picture.

        I can only imagine what the “average” price would be for the capital.

        Then take another city – Leeds, for example.  925 listings in the same 14-day period.  THREE of those come in at +£1million.  LESS THAN 250 of those listings are being marketed in excess of £250k.  About 130 of them are UNDER £100k.

        Different worlds… 150 miles apart.

        And the former is skewing the figures MASSIVELY compared to the latter.

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        1. mrharvey

          PeeBee, it was the article’s words, not mine. 9th para down.

          I’m on your side; I just don’t understand how London CANNOT be going up if they have increased at 11pc, quoted as being faster than anywhere else in the UK!

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          1. PeeBee

            Ahhhh— semi apology to your goodself is called for, mrharvey!

            Only ‘semi’ on the basis that the article explains that the Capital’s prices have hardly moved MoM, but have jumped  by the stated 11% YoY.

            That being said – it’s all billshut.

            You only have to have a reasonable memory to remember the negative bilge being spewed by Shipside in these monthly market commentaries not too long ago.

            Anyone can make figures work for them if they are prepared to make up words around them.

            You only have to look at the Call-Centre agents to see that.

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  4. smile please

    Scary.

    Prices are out of control.

    Government can mess around with stamp duty, tax or interest rates as they like it will not curb the appetite in this country for property ownership. The above figures show what a good investment property is compared to a pension or savings account.

    The only thing to keep prices even is build more houses. new towns, cities and expand towns we already have. More stock, less demand will even prices out. Basic economics!

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  5. Property Paddy

    Eureka I have it !!

    How to stem the ever climbing house prices in London and the South East.

    Ti’s easy.

    All you got to do is build more mcdonalds.

    Why I hear you ask ?

    Well no one would want to live next to one, so the more you have the lower the asking prices are gonna be.

    Innit ?

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