Despite the increase in property for sale, prices have also risen in June. The average home is now priced at £220,308, up 0.3% when compared to average prices in May (£219,748). On an annual basis prices are nearly 2% higher than in June 2009.
The rise in both prices and stock levels can be attributed to demand outstripping the increased number of properties for sale. Lenders are now offering mortgages with far more relaxed lending criteria than in previous months and buyers are more confident about entering the market. This increased demand has helped push average prices up.
All Regions except East of England Record Stable or Rising Prices
Despite having the largest rise in average prices in May, the East of England was the only region in the UK to record falling prices in June (down 0.5%). The largest rise was in Wales (+0.7%) with average prices now standing at £171,772.
Nigel Lewis, property analyst at FindaProperty.com, comments:
“We’ve seen a flood of sales properties come onto the market this month. And that is in no small part due to the scrapping of HIPs according to our findings, in addition to rising prices since the start of the year. Demand for property has helped prices stay strong despite the explosion in the number of homes for sale and this fifth month of rises means asking prices are now higher than at any point since July 2008. But with Government austerity measures due to be imposed in the near future it is unlikely that prices will rocket out of control.”
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