The average price house sellers are demanding for their properties in the UK is up 4.1 per cent this month, the highest monthly increase since April 2002.
According to the Rightmove House Price Index (HPI), the average selling price in February was £233,252, compared to £224,060 in January. This represents a year-on-year rise of 1.4 per cent.
The property website identified a number of causes for the uplift including a “spring price pump” by sellers in cash-rich areas were available properties are scarce, and a notable increase in mortgage deals – those asking for just a 10 per cent deposit are up by a third on this time last year.
Miles Shipside, director at Rightmove, said: “We’re seeing a strong spring bounce in asking prices this year, but the ball is still a lot smaller than it was before the credit crunch as market volumes are constrained. The biggest jump in new sellers’ asking prices for nearly ten years indicates there is pricing power if you are selling the right type of property in the right place where enough potential buyers have access to funding.”
According to Rightmove, the London boroughs of Richmond-upon-Thames, Kingston-upon-Thames, Wandsworth, Haringey, and Harrow represented the top five performers for February 2012, while Kensington and Chelsea, Ealing, Lambeth, Camden, and Sutton were the poorest performers.
Shipside said: “Prices of some property types in some areas have dropped back enough to offer temptingly affordable homes, either to investor landlords looking for good rental yields or to buyers comparing mortgage payments to the costs of renting. In some micro-markets sellers have the upper hand, but on the whole a buyer with cash or a mortgage offer is the one in the driving seat.”