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London house prices drop in March - Rightmove
Average asking prices paid by first- and second-time buyers in Britain hit records levels this month, although overall prices in the capital fell, according to data released by Rightmove on Monday.
Prices paid by first- and second-time buyers rose to £189,840 and £272,031, respectively, while overall, house prices were up 1.5% on the month in March and 2.1% on the year.
Rightmove said the monthly increase, which is the largest seen at this time of year since 2007, appears to be a slightly delayed reaction to strong demand from home movers measures in the first two months of this year, which is now feeding through to stronger upwards price pressure. This has been exacerbated by a dip in the number of sellers coming to market, increasing the imbalance between demand and supply.
Miles Shipside, Rightmove director and housing market analyst, said: "Many buyers entering the traditionally busy spring market this year face paying more than ever for their target property, and having a more limited choice. High demand and limited supply in parts of the country mean that the average price of newly-marketed property is at its highest ever level in four out of eleven regions.
"There is also upwards price pressure in the lower and middle market sectors with both first-time-buyer and second-stepper properties at new national record price highs. The first two months of 2018 saw Rightmove traffic at its highest ever levels, and this demand appears to be now feeding through to fuel the substantial £4,503 jump in average new seller asking prices this month."
It was a different picture in London, however, where prices were up 0.6% on the month but down 0.6% on the year, with the annual rate in negative territory for the seventh consecutive month.
Shipside said: "There is a lack of spring in the number of new sellers stepping onto the market. With an annual rate of price decrease as opposed to increase being a constant factor for the last seven months, it is bound to be a deterrent to some potential sellers.
"Even though fewer properties are coming to market, the slower rate of sales means stocks of unsold property are growing, leading to subsequent downwards price pressure. This is good news for potential buyers as it strengthens their negotiating power, but means some potential sellers are putting off their marketing given the reduced chances of selling at their desired price."