–Rightmove: UK Oct House Asking Prices +3.1% m/m; +2.9% y/y
–Rightmove: House Asking Price Rise Illogical; Fundamentals Poor

LONDON (MNI) – UK house asking prices rose sharply in October,
posting their sharpest increase for this month for seven years,
according to online property specialist Rightmove.

Rightmove’s House Price Index found asking prices up 3.1% on the
month and up 2.9% on the year in October, having fallen 1.1% in
September. Rightmove highlighted the oddity of the move, saying it was
“seemingly illogical” and suggesting that by hiking prices sellers could
damage their chances of concluding a deal.

October is traditionally a strong month for house prices, with the
average rise for the month over the past decade standing at 2.0%,
according to Rightmove, but the 3.1% rise is still the largest increase
for this month seen since 2003.

“Market fundamentals remain poor,” Rightmove said in its analysis,
with supply rising and mortgage availability declining.

Average properties for sale per estate agents’ branch were up at
78 this October compared to 69 in last October.

The Rightmove survey of 105,769 new October sellers, however, found
they were asking on average stg7,082 more for their homes in October
than in September.

Rightmove suggested one reason why sellers may have increased
asking prices. It said with the Home Information Packs, which cost
sellers time and money to prepare, abolished sellers appeared to be
testing the market at minimal cost.

“Disappointment is the likely outcome for many sellers as evidence
shows high launch price damages chances of securing a later sale,”
Rightmove said.

Recent data on actual selling prices has tended to suggest the UK
could see house price deflation again. The Halifax September house price
survey showed a record monthly fall.

“Given the challenges of the current market, the behaviour of
sellers in raising their average asking prices by over stg7,000 takes
some explaining,” Miles Shipside, director of Rightmove, said.

–London newsroom: 4420 7862 7491; email drobinson@marketnews.com

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