Forecast of Further Falls in 2011 as December Sellers Drop 3%

By Rightmove Group Ltd, PRNE
Sunday, December 12, 2010

LONDON, December 13, 2010 - Rightmove's December House Price Index saw new sellers
dropping their average asking prices by 3% over the past month, the fifth
fall in the last six months. This leaves the average asking price for a
property in the UK at GBP222,410.

Rightmove ( forecast that new
sellers will have to drop their asking prices further during 2011, the extent
to which hinges upon whether base rates rise and/or forced sale numbers
increase substantially. At best prices will be flat, but a drop by as much as
5% is predicted if sorely stretched lender forbearance buckles as prices fall
and repossession numbers jump as a consequence. Price falls on a national
average basis of up to 5% are relatively minor - indeed, national average
asking prices are 6.5% lower this month than they were in June. However, in
areas of over-supply and where forced sales are more prevalent, a more
extreme re-adjustment of sellers' price expectations will be necessary. These
are likely to be more concentrated in the north of the country.

Shipside adds: "In spite of economic woes, un-seasonally high numbers of
searches on the Rightmove website show that prospective buyers are still
looking, perhaps watching and waiting for the right buy to whet their
appetite and fit their pocket. Sellers are going to have to price more
competitively in 2011."

The forecast for 2011 comes against a backdrop of falls in five of the
last six months. This is the second largest fall we have ever recorded in the
month of December, and the biggest reverse for three years. This
re-adjustment means that average asking prices have, after a year of
contrasting halves, remained at a virtual standstill at just 0.4% above where
they were a year ago. This ties in with Rightmove's December 2009 forecast of
flat prices for 2010.

Shipside adds: "We cannot see conditions on the immediate horizon that
would cause a significant fall in prices unless the credit crunch tightens. A
continuing drift of a few per cent similar to what we have seen in the latter
part of 2010 is likely in 2011 until the economic recovery gathers real pace.
This would mean that house prices( could well be around 10% lower
than the mid-point of 2010, helping overall buyer affordability and housing
market recovery".

For further statistics and to download the Rightmove December 2010House
Price Index please visit - or search for local
house prices at

Rightmove Press Office,, +44(0)207-087-0700

Rightmove Press Office, press at, +44(0)207-087-0700

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