Asking prices for residential properties new to the market rose in March to reach an all-time high, fuelled by greater activity among buy-to-let investors looking to take advantage of attractive rental returns.
Rightmove reports that the average new asking price is £239,710, up 1.7% month-on-month, and slightly higher than the previous record set in March 2008 of £239,655.
Impact of Investor Activity
Asking prices are now 1.2% higher compared to March 2012 and 10% higher than the post-credit-crunch low asking price of £218,081 recorded in March 2009.
Miles Shipside, Rightmove Director and housing market analyst, said: “In today’s turbulent world where economic crises seem more likely to re-appear than disappear, any market upturn will take longer to build home-mover confidence to the point that it starts to feed through to actual transactions.
Trends in Property Prices – March’s All-Time Highs
“Even those who truly believe that the market has turned a corner may be unable to do anything about it due to lenders’ cautious risk profiling, a significant factor limiting the speed and strength of the recovery.
“However, with new sellers asking more than ever before as we enter the traditionally busy spring market and an expectation among home-movers of price stability or growth, there is now a bedrock upon which confidence and momentum appear to be building.”
Article courtesy of Property Investor Today“”
