UK House Prices Rise In March: Rightmove

Bigger than expected asking price surge- but market still cooling

Prices sought by sellers of United Kingdom homes rose 1.3% month-on-month in March 2017, according to the latest house price index published on Monday (20 March) by Rightmove, the United Kingdom online real estate portal and property website.

Climbing property prices in March are in line with the increase seen this time a year ago, although at that time demand was being boosted by buy-to-let investors rushing to beat a stamp duty hike that was coming into force in April.

In regional terms, asking price rises in the East and West Midlands are outstripping all other areas.

Three quarters of agents (75 per cent) surveyed by Rightmove reported their local market as price sensitive and that an asking price more than a few per cent too high will harm interest levels in the property.

Across the country, the average growth was 1.3pc this month, but annually properties have only increased in value by an average of 2.3pc.

House prices across England and Wales have been driven by growth in the Midlands.

Three-quarters of agents surveyed by Rightmove report that the market is now price-sensitive, with buyers reluctant to enquire if properties are priced just a few per cent too high.

Andrew Oulsnam, director of Robert Oulsnam & Company in Birmingham, said that he expects property prices to "continue to rise between 4 per cent and 5 per cent over this year, outpacing many other parts of the country".

According to property website Rightmove, the price of property coming to market went up 1.3% in March, down from 2% the previous month.

The average United Kingdom asking price hit £310,108 this month.

Asking prices for homes in the East Midlands have topped £200,000 for the first time as Britain's booming housing market showed no signs of slowing this month.

But he pointed out that while market fundamentals remain robust, the annual rate of increase in the price that new to the market sellers are asking for their property remains modest at 2.3% for the second consecutive month.

He believes that many buyers are being forced to be price sensitive, so sellers have to be wary of over pricing if they want to sell, especially in the South where the pace is no longer being set by the more affluent commuter belt, including London with its global appeal.

On the year, however, growth was 2.3%, slowing down significantly from 7.6% in March 2016.

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