–Rightmove: UK May House Asking Prices Up 0.7% m/m; Up 4.3% y/y
–Unsold House Stock Starts To Weigh On Market – Rightmove
LONDON (MNI) – The rise in house prices moderated in May from
recent stronger levels, with prices rising 0.7% on the month while
the year-on-year rise now stands at 4.3%.
That compares with a rise of 2.6% on the month in April when prices
were up 6.0% on the year.
Rightmove reported that there had been a surge in new sellers
coming to the market just ahead of the May election and reported signs
that unsold stock is starting to weigh on prices.
“The week before the election saw the highest number of new sellers
coming to market since week commencing 28th June 2008, seemingly
undeterred by the impending election. However, the lack of buyers able
to obtain a mortgage and proceed in these uncertain times is now
starting to tell in Rightmove’s statistics, with this year’s unsold
stock level continuing its inexorable rise”.
The 0.7% monthly rise in asking prices marks an unseasonal low,
Rightmove said.
Miles Shipside, commercial director of Rightmove commented:
“We observed last month that rising prices and more properties
coming to market would be unhappy bedfellows in the long-term. This
month we are seeing signs that the relationship is under increasing
stress.”
“Sellers are starting to reduce their pricing expectations to
court the fewer buyers who are able to proceed, though the number of
buyers who can purchase is too low to bring volume back to the housing
market,” he added.
Bank of England Monetary Policy Committee members have expressed
skepticism the rally in the UK housing market can be sustained. Recent
data have been erratic but the Rightmove data set does seem to support
the view the rally could run out of steam.
–London newsroom: 4420 7862 7491; email dthomas@marketnews.com
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