Record house prices recorded as eight buyers chase every home
03-19-2014
EIGHT buyers chasing every house on the market have pushed asking prices to a record high this month.
By: Sarah O'Grady
Buyers will now have to pay on average 16 000 more than last year Buyers will now have to pay on average £16,000 more than last year [ALAMY]
The average price in England and Wales hit £255,962, passing last July’s peak by £2,304.
Sellers now want £16,251 or 6.8 per cent more than they did a year ago, according to figures released by property analysts Rightmove.
A record was set in London, where the average asking price reached £552,530.
Miles Shipside, director of Rightmove, said: “There is a definite spring seller rush and the greater choice available to buyers will hopefully mitigate the upwards price pressure.”
The data was backed up by the estate agency network Sequence, which found an average of eight buyers chasing every for sale sign.
Transactions increased 17 per cent in February compared with the same period last year and rose seven per cent on January. Mortgage applications from first-time buyers rose seven per cent in a month and are 13 per cent higher than the same time last year.
David Plumtree, chief executive of Sequence which owns 300 estate agent branches, said: “Activity in the market and competition for property across the country is heating up.
“Fuelled by attractive mortgage products, the number of new buyers registering is rising and the shortage of available property is resulting in rapid price growth.
“With interest rates expected to rise sooner than later, homeowners considering selling should seize the window of opportunity.”