Thursday, 5 October 2006Prices defy slowing housing market
Asking prices for property have risen by almost £20,000 over the past year, but the pace of the market appears to be slowing, a property website said today.
The typical seller put a price tag of £214,566 on their property in September, compared to £195,407 a year ago, an increase of 9.8%.
However, property website Rightmove said prices had only edged up by £526, or 0.2%, between August and September. Rising household costs, including ever-increasing utility bills and last month's 0.25% interest rate rise to 4.75%, appear to have put a downward pressure on the market, the website said.
Meanwhile, Gordon Brown today hinted at further rate rises in his annual submission to the International Monetary Fund, and analysts are widely expecting an increase in the cost of borrowing sooner rather than later.
Miles Shipside, commercial director at Rightmove, argued that there was no need for further intervention from the Bank of England, saying asking prices were "at a virtual standstill" and a rate rise would do "more harm than good".
Mr Shipside said he expected prices to increase by 8% over the course of 2006, and added: "Sellers should price competitively and offer less on the one they are buying, as it's often the only way to do deals in this market."
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