This fourth consecutive rise sees property coming to market up by 6.9% or £15,717 so far in 2013, the second highest national figure ever recorded and within £1,529 of the all time high.
The firm said that a combination of more positive market sentiment and seller shortage is fuelling the upward price pressure with the number of newly marketed properties down 4% compared to same period last year.
While there has been a 12% increase in new seller numbers unsold stock remains little changed indicating an increase in sales which are also completing more quickly with the average time on the market now 80 days compared to 90 days this time last year.
All regions have seen prices rise month on month except London, though Rightmove says that this should be put into the context of prices in the capital outpacing the rest of the country over the last 12 months.
‘Transaction volumes may be historically low but, paradoxically, new seller asking prices are within a grand and a half of a new record high. With mass-market buyers still sitting on the sidelines, the size of the active market is a lot smaller, making it easier for an upswing in activity to feed through to an upturn in prices,’ said Miles Shipside, director and housing market analyst at Rightmove.
He thinks that London prices are not heading for a downward trend. ‘London prices have paused this month but are likely to bounce back and May looks like an odds on bet to deliver a new asking price record,’ said Shipside.
East Anglia saw the biggest increase in prices, up 4.4%, followed by Wales and the South West with a rise of 3.9%, then Yorkshire and Humberside and the West Midlands on 3.6%, the South East on 3.4%, the North West and East Midlands on 0.9% and the North on 0.2%. While in London prices were down 0.5%.
Within London some areas continued to see considerable price rises led by Camden with an increase of 4.5%, followed by Brent up 2.9% and Bromley, Sutton and the City of Westminster all up by 2.4%. At the opposite end Hammersmith and Fulham saw prices fall by 3.4%, Newham was down 1.6%, Wandsworth down 1.4% and Barking and Dagenham and Kingston-upon-Thames both down by 1.3%.
Shipside warned about too much talk of a recovery. ‘It is true to say that more estate agents are reporting more activity in more segments of the market but while spring may be here the ongoing chill of the recession is still in the air,’ he added.
He believes that although Funding for Lending looks to have led more interest from buyers sellers still need more encouragement. ‘In theory, the combination of more buyer activity and a greater willingness of lenders to lend should whet the appetite of those potential sellers who have been steadfastly stuck in the stalls in recent years but it looks like sellers need a little more encouragement before they decide to test the water and bring their property to market. The result is a degree of upwards price pressure in some locations and market segments, benefitting those sellers who have taken the plunge, and in time will encourage more to follow,’ explained Shipside.
‘While recent mortgage lending data from the Bank of England seemed to indicate no pick up in mortgage approvals in February, recent soundings from surveyors is that they are busy now. January and February were perhaps spent priming the pump, and we expect mortgage approvals to rise as more are tempted by the cheap borrowing on offer,’ he added.
Rightmove research also shows a narrowing of the average gap between last advertised asking price on Rightmove and sold price recorded with the Land Registry. In December the discount stood at 3.39%. It has since narrowed to 2.95%.
‘This indicates that sellers are negotiating less and buyers are willing or able to pay more. While the discount from the asking price on an individual property is very much a product of how realistic that price was, it is a sign of a recovering market if they are paying closer to what sellers ask,’ said Shipside.
‘Obviously, we do not suggest that all buyers offer exactly 2.95% below the asking price or that all sellers adopt this as their maximum discount level, as the balance of power between buyers and sellers varies considerably across the many micro markets of the UK. However, we do suggest that you seek the advice of an estate agent whose local market expertise can help you make an informed decision and help turn your property dreams for this year into reality,’ he added.