The average asking price for a home in Great Britain increased every month last year, rising by almost £11,500 since January 2013 and 5.12% up when compared to the same time in 2012, according to the latest data from Move with Us.
Figures from Move with Us have revealed five months of consecutive declines in the number of new property listings, which fell by 17.62% compared to this time last year. The reduction in the supply of new property listings has pushed up the average asking price as competition increases among buyers and new properties become a rarer commodity. Higher demand generated by the Help to Buy scheme and returning confidence in the sales market means that asking prices are increasing across almost every region in Great Britain.
"Although the market tends to react with lengthened selling times when prices rise, we have only seen small increases in the number of days that it takes to sell a house across the country. The national average is now 111 days, compared to 121 days at the same time in 2012."
“Lower numbers of new property listings which increased demand from buyers together with the Help to Buy scheme have all contributed to the month on month increases in average asking prices seen across Great Britain in the third quarter of 2013,” said Robin King, Director of Move with Us. “With a limited supply of new properties coming on to the market and buyer confidence returning, sellers are currently benefiting from higher property prices caused by less competition in the market. At a regional level, the average asking price has increased in almost every region in the country in Q3 and buyers are seeing higher property prices.”
The UK government has, however, recently announced changes in its Funding for Lending Scheme that switch the emphasis from domestic to business lending. This may result in a slowing of the rate of increase during 2014 (see page 8).