House Price Update to 23 March 2011

UK House Prices Situation: Sellers continuing to increase asking prices

UK House Prices Forecast: House prices are likely to stagnate or slip in most areas this year

Asking Prices Up 0.8% In March – Rightmove

The average asking price of homes for sale rose by 0.8% in March, according to Rightmove, the UK's largest property listing website. It is a smaller increase than the 3.1% rise seen in February but nonetheless reflects continued optimism amongst sellers.

According to Rightmove, estate agents are reporting a growing number of agreed sales and the average time on the market for properties has fallen from 98 to 89 days, reflecting increased buyer activity.

Average unsold stock rose by just one unit from 69 to 70 homes per estate agent, suggesting that the usual spring surge in new listings has not materialised fully this year.

Current mortgage lending conditions are also causing some types of houses to sell better than others. Terraced houses – the traditional target of first-time buyers – are selling poorly as buyers at the bottom end of the housing ladder struggle to both pay rent and save up a sufficiently large deposit. As a result of this weak demand, the supply of terraced homes for sale is down 31% on 2007.

At the other end of the scale, detached houses prices are up by an average of 3.1% on the year, reflecting stable demand from deposit-rich existing homeowners who are seeking to trade up.

New Figures Show House Prices 11% Down On Summer 2010

New figures from property website Zoopla have shown that average house prices are down by an average of 11% on prices seen in July 2010. Prices also remain an average of 18% below the peak prices seen in October 2007.

Read about UK House Price indexes / key statistics that track the ups and downs of house prices

Read our take on the Credit Crisis the effect on UK House Prices and Mortgages. A Special Report

.