Rightmove Reports Average UK Asking Price up 2.6% to GBP235,512, as Cash and Supply Over-ride Pre-election Jitters

By Rightmove Group Ltd, PRNE
Sunday, April 18, 2010

LONDON, April 19, 2010 - With the onset of the traditional moving season, new sellers coming to
market ignored any pre-election jitters and economic woes and pushed up their
average asking prices by 2.6% (GBP5,898) in April according to the Rightmove
House Price Index. This robust increase contrasts sharply with the 0.1% rise
the month before, reflecting a very patchy housing market that is struggling
to find a consistent and cohesive direction this spring. At a macro level,
the stock shortages that have underpinned prices are easing slightly, with
the current run-rate of properties coming to market now recovering to levels
last seen before the Lehman Brothers collapse in September 2008. At a micro
level, estate agents (www.rightmove.co.uk/estate-agents.html ) report
wide variances in supply-and-demand dynamics between neighbouring patches,
and also within property types in the same area. The affluence of purchasers
seeking to buy in a particular location remains the decisive factor.

Miles Shipside, commercial director of Rightmove comments: "Rarer
property (www.rightmove.co.uk/ ) types in desirable locations are
achieving record prices. For 'location, location, location' you can also read
'cash, cash, cash'. Conversely, in areas where buyers have less access to
cash or mortgage finance, or there is an over-supply of a certain property
type, then sellers are having to price much more aggressively to secure a
sale. There is increasing divergence between these different markets, with
agents reporting some pockets where a couple of viewings find a cash-rich
buyer, whereas a few miles down the road it's taking over 20 viewings to
achieve a sale."

The run up to the election appears to be having little effect on the
housing market (www.rightmove.co.uk/house-prices-in-my-area.html/ ).
However, some opinion polls suggest that a hung Parliament is still a real
possibility, and the uncertainty over who will form the next government may
continue for much longer than usual. We would normally expect the "feel-good
factor" to cause an increase in housing market activity once the new
government is confirmed, but this would be negated by a period of
post-election political turbulence.

Miles Shipside comments: "As far as the housing market is concerned, any
election result is better than no result. In the event of a hung Parliament,
the market is likely to go into suspended animation until greater certainty

For further statistics and to download the Rightmove April 2010 House
Price Index (www.rightmove.co.uk/news/house-price-index ) please visit
- www.rightmove.co.uk/news/house-price-index or search for local house
prices (www.rightmove.co.uk/house-prices.html ) at

Contact: Tom McGuigan, Rightmove Press Office, press@rightmove.co.uk,

Contact: Tom McGuigan, Rightmove Press Office, press at rightmove.co.uk,

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