House prices continue to climb, says survey

House prices in England and Wales have continued to rise for the second consecutive month, says website Rightmove.

The average asking price rose by 0.8 per cent in November, says the online estate agent.

Mortgage lending has also stayed buoyant, sustained by people re-mortgaging to find the best mortgage rate.

The survey examined the asking prices of over 130,000 homes ñ over half the properties on the UK market.

“The property market’s key foundation has returned: confidence is back leaving pessimists out in the cold,” Rightmove’s commercial director Miles Shipside told My Finances.

“The combination of sustainable prices and a fall in interest rates has raised buyers and sellers’ confidence to strike a deal,” he added.

The annual rate of house price growth has also increased from 1.5 per cent in October to four per cent in November.

Newly marketed properties are now worth more than they have been for seven months, with prices largely steady over that period. Buyer demand has picked up, with an increase in the number who compare mortgage rates.

Properties are now spending an average of 79 days on the market, down from 81.

“This is not a return to a boom market, but the arrival of the long-awaited ‘soft landing’. It is also a reflection of the unseasonably high sales reported by estate agents during the summer months working through to completion,” Rightmove said in a statement.

But for some the readjusted levels of expectation are yet to strike home.

“There are still some properties where price expectations are too high to benefit fully from the improving buyer sentiment. Over-valuing will still back-fire,” said Mr Shipside.

© Adfero Ltd

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