March asking prices down on February – but still strong

Rightmove.co.uk has just released it’s March House Price Index based on seller asking prices from mid-February 2012 to mid-March 2012.

After the strong positive increase in February of 4.1% from sellers, it is unsurprising to find that March HPI is down. However the average house asking price has still increased quite strongly at 1.6%, leaving the average price at £236,939 – against £233,252 from last month

The represents an increase :

  • Of 4.9% over the first three months of 2012 – the largest first quarter increase since back in 2004.
  • Since March 2011 of 2.2%
  • Of search activity by 16% within 2012 so far compared with 2011, showing a growth in confidence in sellers to move.

However with the end of the stamp duty holiday there are concerns by Rightmove.co.uk that the strong start to 2012 will be stifled.

Not only do first time buyers lose this stamp duty exemption, but also the properties typical to first time buyers are rising faster that semis and detached houses

Further more the deposit requirements placed on first time buyers means that they now have to raise between £15,000 to £40,000 in deposit

The regional difference seen in London has meant all time highs and Kensington and Chelsea now has an average asking price of £2,000,120.

Alec Hanson



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