Between March and April, the average asking price increased by 2.9 percent to hit £243,737. According to Rightmove, sellers are now asking a higher price for their homes than they were at the height of the housing market in May 2008.
The average is being distorted by London’s uncontrollable housing market and prices in London are almost 15 percent higher now than they were in 2008.
The only other area to have experienced a similar rise in their asking prices since May of 2008 is the South West. Prices in this region are 2.3 percent higher, with the South East and East Anglia areas experiencing similar results. Miles Shipside, the director of Rightmove, commented, “it has taken approximately four years for sellers to see their asking prices rise from the record year’s highs. However, this is not a sign that the housing market is headed for a recovery. The strongest areas of activity seem to be around those who have the financial means to obtain cash.”
Miles also states, “It’s an odd state of affairs for many to be considered unworthy of obtaining a mortgage in the eyes of the lender, when most hopeful buyers are excluded and the average prices are at their highest level.” Fall asking prices have been strictly concentrated to the areas in the North and Wales. Asking prices in the South and those areas outside of London hit their highest level in August of 2007 and plummeted with Northern Rock’s collapse.
The South West area saw the greatest decline in new listings. Even London is experiencing a lower number of new homes being placed on the market than the previous months.
The areas where owners have seen the most elevated rise in prices are gaining extra advantages. The additional equity they have acquired, now allows them to gain access to the prime mortgage deals. This means that the local market has remained afloat in these specific areas, regardless of the strict credit guidelines.
The opposite is happening in the areas where the rise in prices had its limits and the homeowner saw negative growth in their homes equity.