–Rightmove: UK Dec House Asking Prices -3.0% m/m; +0.4% y/y
–Rightmove: House Asking Prices Post Sharp Monthly Drop
–Rightmove: Prices Could Drop 5% in 2011

LONDON (MNI) – UK house asking prices fell for the second
consecutive month in December, according to Rightmove’s latest House
Price Index Survey.

Rightmove’s House Price Index found asking prices fell 3.0% on the
month and rose just 0.4% on the year in December, having increased 1.3%
on the year in November.

The bearish behaviour of sellers has led Rightmove to forecast
further losses in 2011.

“We forecast that new sellers will have to drop their asking prices
further during 2011, the extent to which hinges upon whether base rates
rise and/or forced sale numbers increase substantially,” Rightmove said.

“At best prices will be flat, but a drop by as much as 5% is
predicted if sorely stretched lender forbearance buckles as prices fall
and repossession numbers jump as a consequence,” it added.

Rightmove Director Miles Shipside said the UK will see larger falls
in weaker markets due to over-supply and forced sales.

“Negative factors are likely to outweigh the positive price
pressures of pent-up demand for housing and a price under-pinning
shortage of quality homes in popular locations,” he said.

“This makes forecasting more of a lottery than usual, though the
net result is likely to see average national asking prices fall
slightly. At best they could be close to flat and at worst down by 5% if
repossession numbers jump up from 1 in every 15 sales,” he said.

–London newsroom: 4420 7862 7492; email wwilkes@marketnews.com

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