LONDON (MNI) – New seller asking prices failed to rise in
May for the first time since the start of Rightmove’s House Price Index.
According to this month’s index, the average asking price of property
remains unchanged on the month and is up 2% on the year.
This follows a 2.9% rise in April when prices also rose 3.4% on the
year.
Rightmove believes the lack of demand is due to a combination of
end of first-time buyer stamp-duty assistance, some upward mortgage rate
movements, renewed Eurozone jitters as well as high rainfall in May.
Going forward, the olympics and Jubilee celebrations may further dampen
housing market activity.
Commenting on the data, Miles Shipside, director of Rightmove said it
was a shock to see prices flat at this time of year.
“Perhaps the first-time buyer stamp duty holiday, and the knock-on
activity it helped to create, has concertinaed the market’s stronger
than expected early spring momentum into the first four months of the
year rather than the usual six,” Shipside said.
–London newsroom: 4420 7862 7491; email: ukeditorial@marketnews.com
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