–Hometrack: UK May House Asking Prices +0.2% m/m; +2.0% y/y
LONDON (MNI) – Rises in UK house asking prices were subdued through
May, with the monthly rise at 0.2% and the annual change at 2.0%,
housing market intelligence company Hometrack says.
In April, prices had risen by 0.2% and by 1.8% on the year.
Hometrack cited heightened uncertainty engendered by the general
election for the lack of buoyancy during the month.
All key market indicators posted a marked slowdown compared to
previous months.
The volume of sales agreed grew slightly – by 2% – but this was
well down on the average increase in sales agreed of 9.6% per month over
the previous 3 months.
Demand for housing grew just 0.5% over May compared to an average
4.2% growth between February and April, Hometrack said.
The supply of homes for sale continued to grow but at a slow pace.
The survey recorded a 1.8% increase in listings over the month.
Time on the market remained unchanged – at 8.3 weeks – for the
third consecutive month.
Recent press reports have highlighted a growing numbers of sellers
coming on to the market trying to sell second, or investment, homes
which would be liable if the new government goes ahead with its proposed
increased in capital gains tax.
Richard Donnell, Director of Research at Hometrack, noted that with
the budget on June 22, and properties on the market for an average of
8.3 weeks “it may be too late for investors and second homeowners to
crystalise their gains.”
Despite lower levels of market activity, Hometrack said that a
continued scarcity of housing for sale kept an upward pressure on prices
– although this trend is concentrated in southern England.
–London newsroom: 4420 7862 7491; email: ukeditorial@marketnews.com
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