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CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 18 October 2016

Rightmove UK asking prices near record

Asking prices steadying

The average asking price for UK homes rose bobbed higher a second consecutive month, up by +0.9 per cent or +£2,623 to £309,122 in October according to Rightmove.

The average price of property coming to market was +4.2 per cent higher than one year ago, but remains marginally below the record high set in June this year.

Transaction volumes appear to have steadied nationally - a bit below 2015 levels for this time of year, but also above where they were in 2014. 

The strongest performing regions over the year were once again the East of England (+7.6 per cent), and the South East of England (+5.6 per cent), but with stock levels now rising in all four of the southern regions (albeit from abnormally depressed levels). 

In Greater London the average asking price rose by +£14,859 or +2.4 per cent in October to £645,833, for a steady increase of now only +2.5 per cent from October 2015.

In London, some of the outer and less expensive boroughs have performed solidly over the year to October, including Croydon, Newham, and Lewisham.

And lots of boroughs beginning with 'H' 'ave also 'ustled well, including Havering, Hillingdon, Harrow, Hackney, and Haringey, for example, though confusingly Londoners don't pronounce their 'aitches (and come to think of it several of these boroughs aren't all that cheap any more either). 

Somewhat predictably the upmarket boroughs 'ave been 'urting, with transaction volumes having utterly collapsed over the past year (largely due to high taxes), and the median asking price in Westminster declining by -8 per cent over the 12 months to to October. 

Year-on-year declines were also recorded in 'ammersmith & Fulham, Kensington & Chelsea, and Kingston Upon Thames.

The wrap

Overall, while average asking prices are higher than one year ago, the pace of growth appears to have slowed following the Brexit referendum, though the nosediving currency could act as a stabiliser by bringing foreign buyers back in to the London market.

Finally, about once every two to three months on average someone comes bleating to me that these are asking prices and not sales prices (I know, lol - it even says so on the chart).

Still, London asking prices have increased by well over +150 per cent since September 2003, so selling prices must have increased somewhere along the line, else all the vendors' expectations are rubbish. 


Hammer time

Sydney's auction market recorded a very strong result this weekend, with preliminary clearance rates again above 80 per cent, and stock levels still down.

The strongest sub-region was the lower north shore with a 94 per cent auction clearance rate (i.e. 47 from 50 sales under the hammer).